Determinants of Exports in Fiji
نویسندگان
چکیده
This paper identifies some of the main determinants of exports in Fiji. A single equation model for exports is developed in which trading partner income and relative prices play a central role. The underlying conceptual framework is an imperfect substitution model, in which the key assumption is that exports are not perfect substitutes for domestic goods in importing countries. A distinguishing feature of the analysis is the incorporation of the effects of agricultural supply-side shocks in the export equation. The results show that in the long run, trading partner income largely drives movements in Fiji’s exports. In the short run, exports are mainly influenced by changes in factors which affect the output capacity of agricultural production, such as weather conditions and industrial disputes, as well as relative prices and changes in foreign demand.
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