Exploring Sectoral Contributions vis-à-vis Growth: an Empirical Study of Fiji using ARDL Bounds Approach

Abstract

In this study, we explore the contribution from agriculture, manufacturing and services to the economic growth of Fiji. The results show in long-run, services sector has the largest contribution (0.91 percent), followed by manufacturing (0.88 percent) and agriculture (0.22 percent). In the short run, mixed contribution from manufacturing and services due to short-run shocks and negative contribution from agriculture due to poor performances of key agricultural activities raises concern for economic sustainability. Therefore, key sub-sector integrated policies and reforms to improve and capitalize on agriculture, manufacturing and services are put forward as pro-growth measures for sustainable development and policy dialogue.