Export‐led growth hypothesis: evidence from Papua New Guinea and Fiji

Purpose This paper aims to examine the export‐led growth hypothesis for Fiji and Papua New Guinea (PNG). Design/methodology/approach The paper investigates the export‐led growth hypothesis for Fiji and PNG who have been facing dismal economic growth performances over the last couple of decades. Findings Findings of the study suggest that for Fiji there is evidence of export‐led growth in the long‐run, while for PNG there is evidence of export‐led growth in the short‐run. Originality/value The findings of this paper have important messages for policy makers given that export sectors in both countries investigated are underdeveloped due mainly to a sustained period of political instability.