| || || Takirua, Toani Barao|
| || || An analysis of the determinants of the economic growth rate in Kiribati|
Author: Takirua, Toani Barao
Institution: University of the South Pacific.
Subject: Economic development -- Kiribati
Call No.: pac HC 682 .T352 2008
Copyright:20-40% of this thesis may be copied without the authors written permission
Abstract: Kiribati is one of the least developed countries. With her increasing population, coupled with its poor resource endowment (with the exception of having huge Exclusive Economic Zone), the lack of foreign direct investment and the under-development of the private sector, create financial burden to the Government. Foreign exchange earnings from official development assistance, access fee, the revenue equalization reserve fund (RERF) and the remittances are significant to the economy. Only the RERF and the access fee have direct contribution to government revenues for its recurrent and development budgets. Aid and the remittances are channeled to unproductive investment and consumption and trade has been in a deficit. The growth accounting result shows that factor accumulation contributes much to growth than the total factor productivity (TFP). In econometric empirical analysis, none of the shift variables (aid, remittances and export) have permanent effects on output, except export having an effect in the short run.