The inconsistent effect of foreign exchange earnings on economic development of Fiji: the strategies and long run relationship through vector error correction modelling

Foreign aid, foreign direct investment (FDI), exports and remittances result critical for the economic growth of countries that are geographically isolated from rest world located at disaster prone areas such as Fiji. The research proposes these variables might have a different impact in emerging economies, based on current social, political context recipient country. This implies prior to allocating scarce resources, each country's framework should been analysed maximise their potential impact. For this study, we applied Johansen cointegration vector error correction model (VECM) time series data over period 1979-2017. results reveal under study positive Furthermore, combined effect aid FDI provides synergies, increasing its effects. We recommend Fiji authorities implement appropriate government policies prioritise exports, expressed order, order foster sustainable growth. also present policy through integration our study.