Analysis reveals asymmetric effects on economic growth in Fiji, highlighting public investment's role and suggesting resilience strategies.
This study examines the asymmetric effects of tourism earnings on Fiji's economic growth, focusing on short‐ and long‐run dynamics using ARDL and NARDL models. It integrates controls, primary sector, government spending, capital formation and CO 2 , to examine how sectoral interdependencies and public investment shape tourism‐led growth. Results show positive tourism shocks have greater long‐run GDP effects than negative ones, supporting the Tourism‐Led Growth Hypothesis. It also aligns with Endogenous Growth Theory by highlighting the primary sector's buffering role against negative tourism shocks. The study provides valuable insights for policy strategies in small island developing states.
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Botei et al. (2025) studied this question.
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