•  
  •  
 

ORCID

Hong Chen 0000-0002-7408-6244

Lanieta Rauqeuqe 0000-0003-4540-9187

Shiu Raj Singh 0000-0002-2176-1736

Yiqun Wu 0000-0002-3470-1484

Yongzheng Yang 0000-0002-3341-3149

Keywords

Pacific island countries; trade; tourism; agriculture; inclusive growth

Abstract

This paper examines the role of international trade for economic prosperity in Pacific island countries (PICs), discusses their comparative advantage, and explores the potential for trade, and tourism in particular, to serve as a locomotive for inclusive economic growth. We find the trade performance in PICs has been generally weak over the past decade, with the exception of resource-rich countries. Small country size and remoteness from global economic centers may have contributed to this relatively poor performance. Using the gravity models to analyze the determinants of merchandise trade and tourism in PICs, we find tourism in these countries faces more favorable conditions for growth than goods exports. Further, we place our analysis in the context of the eastward shift of global economic gravity, focusing on emerging Asia as a source of demand for resource-based goods and services. We argue that the emergence of Asia as a dynamic global economic region presents PICs with an unprecedented opportunity to develop trade, particularly tourism, although traditional markets will remain important for a long time to come. Moreover, if stronger synergies can be established between tourism, agriculture, and fisheries, Pacific island countries stand a better chance to improve broad-based growth

First Page

56

Last Page

80

Page Count

25

Received Date

3 January 2019

Revised Date

9 August 2019

Accept Date

29 February 2020

Online Available Date

27 April 2020

DOI

10.7172/2353-6845.jbfe.2019.2.4

JEL Code

F6

Publisher

University of Warsaw

Download

Share

COinS