| || || Disarmament -- Economic aspects -- Fiji|
| || || Modelling the relationship between defence burden and economic growth for Fiji Islands|
Author: Singh, Baljeet.
Institution: University of the South Pacific.
Award: M.A. Economics
Subject: Fiji. Ministry of Immigration, National Security and Defence -- Appropriations and expenditures, War -- Economic aspects -- Fiji, Disarmament -- Economic aspects -- Fiji
Call No.: Pac HC 79 .D4 S56 2008
Copyright:Under 10% of this thesis may be copied without the authors written permission
Abstract: This thesis examines the relationship between defense burden and economic growth for Fiji. This relationship is modeled within a multivariate framework by including labour force and capital stock in the model. It uses the recently developed bounds testing approach to cointegration and find that there is a long run relationship among the variables when GDP is the endogenous variable. Normalizing on GDP and using two different estimators, it is found that in the long run defense burden have a negative impact while both labour force and capital stock have positive impact on GDP. Finally using Granger causality test, finds evidence of positive impact of labour force in the short run, while capital stock and defense burden do not have any significant impact in the short run. The finding is consistent with Classical school of thoughts, leading to derive some policy implication.