| || || Gounder, Neelesh.|
| || || Foreign aid and institutions : Implications for economic growth in Fiji |
Institution: University of the South Pacific.
Call No.: pac In Process
Copyright:Under 10% of this thesis may be copied without the authors written permission
Abstract: The theories of economic growth allowed us to understand economic growth better but are unable to properly explain the different patterris of growth across countries and over time. Recently, the main point of the growth literature has been the role of institutions, human capital, and the importance of foreign aid in improving human welfare and living standards. The reason for foreign aid is to promote economic growth and progress human welfare in the recipient country. Based on the endogenous growth theory, aid could act as channel for the hssemination of new technologies and ideas. The empirical literature attempting to analyze aid on economic growth is inconclusive. Many studies however, provide a possible link between impact of aid on growth and the quality of institutions and policies present in the country. Throughout hstory Fiji's economic performance has been anyhng but satisfactory. Though past governments have tried to make the economy perform better, it has still escaped the grip of almost half the country's population. Today almost 30 per cent of the country's population lives in poverty. Poor policies coupled with internal socioeconomic dynamics have always been at the forefront in issues regarding economic growth. The main objective of this thesis is to study the economic performance of Fiji through time in relation to the developments in the growth literature and try to identify and provide explanations for growth patterns observed so far. The theoretical discussion and empirical evidence surveyed in &us thesis has shown that successfbl economic growth requires certain bare minimum preconltions to be in place. Good quality of institutions, stable political climate, quality of investment and the manner in whch aid is utilized are important issues with respect to growth in Fiji.