The Fijian economy underwent a 33 per cent devaluation of its dollar against its major trading pa... more The Fijian economy underwent a 33 per cent devaluation of its dollar against its major trading partners after the military coup in 1987. This move, as part of the broader structural adjustment package, was designed to boost the sluggish economy by promoting exports and discouraging imports. This study, which uses elasticities, indicates that the balance of trade will deteriorate in the short run. In the longer run, real net exports will respond positively to changes in relative prices and thus lead to a improvement in trade balance, if combined with other tools to promote private investment and raise aggregate demand.
Small island countries are attempting to deregulate their economies in order to provide flexibili... more Small island countries are attempting to deregulate their economies in order to provide flexibility to firms operating in an ever changing and challenging global market. During this process, regulators and policymakers have found themselves under immense pressure from the private sector over the nature and degree of regulation of commercial activities. Some argue that an economy left to the market will reduce the burden on the State, improve efficiency and growth, and thus contribute to the country's developmental objectives. There are others, however, who argue otherwise. They believe that competition law and policy can play important roles in the advancement of developing countries. We argue that competition policy and law are essential. What might vary between countries, however, is the mix between ex ante and ex post regulation. While regulatory frameworks are being developed in small countries, the State or the regulatory institution might have difficulty in undertaking ex post regulation for several reasons. This article demonstrates how unfair trading practices and anti-competitive behaviour were curbed in Fiji's telecommunications sector.
International journal of bank marketing, May 17, 2024
Purpose -This study examines how the introduction of mobile money transfers, while making it effi... more Purpose -This study examines how the introduction of mobile money transfers, while making it efficient and convenient to access funds, has affected rural households' savings behavior and the banking sector. Design/methodology/approach -This study utilizes Fiji's most recent agricultural census data to model the agricultural household's saving decision. The study estimates an probit model to examine rural households' savings behavior. Furthermore, it utilizes time series secondary data to examine how funds transfer has been channeled to rural households in Fiji. Findings -Firstly, the results demonstrate that with the mobile money transfer platform launch, the banking sector has lost substantial money previously used to pass through its system, thus losing service fees and interest income. Furthermore, the findings demonstrate that those using mobile wallet platforms to receive money are more likely not to have a savings account with the bank. Noting the cultural systems and social settings of the native households and the ease of payments via the mobile platform, they tend to spend more on consumption rather than saving, thus making these households more vulnerable during shocks such as natural disasters. Originality/value -While mobile money transfer is hailed as a revolution, no research has yet picked up the downside to it, that of undermining the very effort by policymakers to get low-income rural households to save. Secondly, this study also highlights how mobile money transfer deprives the banking system of a significant transfer fee income and a source of funds to pool and lend to earn interest income. Furthermore, this study brings to the forefront a dichotomy about how a rural indigenous community sees the welfare and prosperity of their community much differently than what economics textbooks portray.
There is a global movement towards a sustainable agricultural system, given serious concerns for ... more There is a global movement towards a sustainable agricultural system, given serious concerns for the food security of future generations. However, despite this push, adopting sustainable agriculture practices has been poor, given that their positive effect is not directly evident to the farmers. In countries like Fiji, where the majority of the land is leased, not undertaking sustainable agriculture practices can lead to a crisis of food insecurity and degraded low-quality land returning to the land owners and future generations. This study utilizes the latest Agriculture Census data from Fiji to construct a non-parametric production frontier from which to estimate the levels of efficiency of each farmer. These efficiency scores are then decomposed to farmers engaged in Sustainable Agriculture Practices vis-à-vis those not undertaking any Sustainable Agriculture Practice (SAP). The results from efficiency analysis provide efficiency and productivity scores for each farmer. Further decomposing it by SAPs reveals the marked difference in efficiency and productivity scores between farmers who undertake SAPs and those who do not. The results demonstrate that those farmers who undertake SAP have efficiency and productivity levels substantially higher than those who do not. To push the sustainable agriculture agenda amongst the farmers and landowners, policymakers must demonstrate to the farmers that undertaking SAPs will not only maintain the quality of the foundation input soil but will have a significant positive effect on their farm efficiency, productivity, and thus profitability. By doing so, the interests of all stakeholders are merged, making adopting sustainable agriculture practices easier on all farms.
European journal of development studies, Feb 4, 2024
Food security remains one of the main goals for all countries worldwide. While several agencies h... more Food security remains one of the main goals for all countries worldwide. While several agencies have mobilized resources to achieve this goal, food insecurity remains a significant livelihood challenge in many developing countries. Therefore, in this paper, we examine some critical factors affecting the food security of rural agricultural households in Fiji using the latest Agricultural Census data. This study reveals that farmers' access to fishing grounds and non-timber forest resources can improve farming households' food security. The study also shows that while the government vigorously pursues a transition from subsistence agriculture towards commercial agriculture, improving market access and reducing transportation costs will significantly improve food security. Given the importance of regular cash income, the study also demonstrates that off-farm employment of household members, particularly larger-sized households, will substantially help to improve food security. Lastly, and most importantly, the government must quickly examine how it could mitigate challenges posed by climate change, as this could devastate food security via reduced food production.
Since 1997, the agricultural leases on Native land, issued under the 1976 Agricultural and Landlo... more Since 1997, the agricultural leases on Native land, issued under the 1976 Agricultural and Landlord Tenants Act (ALTA), began to expire. The sugar industry is the main commodity export earner for Fiji, directly contributing about 22% of the national GDP and supporting over 25% of the country's active labor force. Fiji exports 80% of its sugar production, earning on average of $250-300 million in foreign exchange annually. Several options have been suggested, including: non-renewal of leases, with the land reverting to Fijian owners; renewal of ALTA but with land rents pegged to the gross value of production instead of the unimproved capital value; sharecropping and contract wage arrangements; and abolishment of lease arrangement under ALTA with leases to be issued under an institutional arrangement guided by the Native Lands Trust Act (NLTA). The land tenure system adopted will have a significant impact not only on the efficiency of the sugar cane sector but also on Fiji's a...
Capital formation is key to long-term development of any country. However, capital formation in F... more Capital formation is key to long-term development of any country. However, capital formation in Fiji has been very low since the mid 1980s. The need for increasing capital formation in Fiji is further compounded by the fact that the availability of land and land-based resources for agricultural and industrial purposes are severely restricted due to the land tenure system and the current impasse. The excess supply of labour requires increasing amount of private and public capital. While the public sector has been playing its role, private sector investment growth has declined significantly over the years. This paper examines the trend and determinants of capital formation in Fiji. Key factors that affect capital formation in Fiji are identified and policy measures considered.
International journal of business and social research, 2013
Child labour use in developing countries has been increasing over the years. In general, it’s c... more Child labour use in developing countries has been increasing over the years. In general, it’s characterized by low wages and long hours of work under dangerous, hazardous, unhealthy and unhygienic conditions, which could lead to poor physical and mental development. It deprives a child of education and natural development. In this paper, we examined the use of child labour in Fiji. The study utilized primary data collected using a structured survey to examine the determinants of child labour. The results from this study demonstrate that the variables such as household size, household income, and the gender of children significantly affect child labour supply. Furthermore, absence of adults from households is also a causal factor contributing towards child labour. Using these results, we make a case for “luxury†and “substitution†axioms for Fiji’s Child labour market.
South African Journal of Economic and Management Sciences, 1999
Small developing countries have for long acquired significant benefits through preferential tradi... more Small developing countries have for long acquired significant benefits through preferential trading arrangements. However, these benefits have led to a proliferation of inefficient industries in the recipient countries. With the recent changes in the GAIT, these inefficient industries may close and thus lead to major economic and social problems in the recipient countries. This paper utilizes the frontier production function approach to examine the efficiency status of Fiji's sugar industry. The analysis reveals that a significant level of inefficiency exists at the farm level of Fiji's sugar industry. Some of the factors that were found to effect the level of efficiency are farming status, land class and ethnicity. These factors are then used to derive policy implications.
International Journal of Economics and Finance, 2013
In an increasingly competitive market, the corporate sectors in small developing countries are ad... more In an increasingly competitive market, the corporate sectors in small developing countries are adopting a number of strategies to deal with raising efficiency and productivity. One such strategy is consolidation, that is, mergers and acquisitions. One of the primary motive to undertake a merger is to gain the synergy that would accrue from more efficient management, economies of scale and scope, removal of duplication of resources, utilization of resources to their full potential, and improved production techniques. This study examines the basis of mergers and acquisitions (M&A) and utilizing two recent cases of M & A applications, provides a theoretical and practical basis to decide on whether mergers and acquisitions will be allowed or not. In doing so, we demonstrate the process and methodologies utilized to assess and examine an M & A application. The first case involves a conglomerate merger in the beverage industry while the other involves an acquisition in the same industry. In both the cases, the M & A application was cleared. In the first case, the merger involved two different kinds of beverage activity -alcoholic and soft drinks beverage hence there was no effect on the market share of the individual products. In the second case, while the acquisition was in the same industry, a detailed financial analysis of the acquired firm reveals that it is a "failing firm", and therefore, in the public interest, the acquisition needs to be cleared.
International Journal of Economics and Business Research, 2011
In most small developing countries, the public sector is struggling to provide an optimum level o... more In most small developing countries, the public sector is struggling to provide an optimum level of public goods to the citizens. A particularly important good is water. Safe drinking water has been recognised as a basic need for a long time. Inadequate supply of safe water can have major health implications and Fiji has faced serious problem with respect to the supply of water to its general population. In this paper, we examine the case of two urban cities and one town where disruptions to the supply of drinking water are a frequent occurrence. The severity of the problem is measured together with the strategies employed by the affected households to cope with the problem. We found that households are willing to pay more to secure better services. Utilising an established econometrics approach, the determinants of the willingness to pay are also identified.
Introduction. The objective of this study was to perform an economic analysis in terms of annual ... more Introduction. The objective of this study was to perform an economic analysis in terms of annual national human capital resource loss from young stroke mortality in Fiji. The official retirement age is 55 years in Fiji. Method. Stroke mortality data, for working-age group 15-55 years, obtained from the Ministry of Health and per capita national income figure for the same year was utilised to calculate the total output loss for the economy. The formula of output loss from the economy was used. Results. There were 273 stroke deaths of which 53.8% were of working-age group. The annual national human capital loss from stroke mortality for Fiji for the year was calculated to be F$8.85 million (US$5.31 million). The highest percentage loss from stroke mortality was from persons in their forties; that is, they still had more then 10 years to retirement. Discussion. This loss equates to one percent of national government revenue and 9.7% of Ministry of Health budget for the same year. The a...
Sri Lankan Journal of Agricultural Economics, 2011
Productivity differences between tenant and owner operated farms have often been investigated usi... more Productivity differences between tenant and owner operated farms have often been investigated using traditional methods. All these studies compute the partial productivity differences between the two farm ownership types. This paper takes the analysis one step further by examining the differences in efficiency among these two farm types. A stochastic frontier production function analysis reveals significant differences between the two farms with respect to input usage, productivity and technical efficiency. Factors causing the differences are identified and policy implications drawn..
Small island nations in the South Pacific are facing a serious problem of loss of human capital. ... more Small island nations in the South Pacific are facing a serious problem of loss of human capital. The loss of skilled and qualified personnel from the small pool is causing a major setback in terms of providing the technical expertise to forge ahead with reform programs that these economies are undertaking. Fiji's policymakers are increasingly confronting this issue, because the nation has experienced a massive outflow of skilled labor following the political instability in 1987. While there is an outflow of skilled labor, the country is also losing a large amount of financial capital. The extent of the outflow has yet to be measured due to lack of a methodology. This study advances a methodology to measure the loss to the economy arising out of human capital loss in a small island economy.
The Fijian economy underwent a 33 per cent devaluation of its dollar against its major trading pa... more The Fijian economy underwent a 33 per cent devaluation of its dollar against its major trading partners after the military coup in 1987. This move, as part of the broader structural adjustment package, was designed to boost the sluggish economy by promoting exports and discouraging imports. This study, which uses elasticities, indicates that the balance of trade will deteriorate in the short run. In the longer run, real net exports will respond positively to changes in relative prices and thus lead to a improvement in trade balance, if combined with other tools to promote private investment and raise aggregate demand.
Small island countries are attempting to deregulate their economies in order to provide flexibili... more Small island countries are attempting to deregulate their economies in order to provide flexibility to firms operating in an ever changing and challenging global market. During this process, regulators and policymakers have found themselves under immense pressure from the private sector over the nature and degree of regulation of commercial activities. Some argue that an economy left to the market will reduce the burden on the State, improve efficiency and growth, and thus contribute to the country's developmental objectives. There are others, however, who argue otherwise. They believe that competition law and policy can play important roles in the advancement of developing countries. We argue that competition policy and law are essential. What might vary between countries, however, is the mix between ex ante and ex post regulation. While regulatory frameworks are being developed in small countries, the State or the regulatory institution might have difficulty in undertaking ex post regulation for several reasons. This article demonstrates how unfair trading practices and anti-competitive behaviour were curbed in Fiji's telecommunications sector.
International journal of bank marketing, May 17, 2024
Purpose -This study examines how the introduction of mobile money transfers, while making it effi... more Purpose -This study examines how the introduction of mobile money transfers, while making it efficient and convenient to access funds, has affected rural households' savings behavior and the banking sector. Design/methodology/approach -This study utilizes Fiji's most recent agricultural census data to model the agricultural household's saving decision. The study estimates an probit model to examine rural households' savings behavior. Furthermore, it utilizes time series secondary data to examine how funds transfer has been channeled to rural households in Fiji. Findings -Firstly, the results demonstrate that with the mobile money transfer platform launch, the banking sector has lost substantial money previously used to pass through its system, thus losing service fees and interest income. Furthermore, the findings demonstrate that those using mobile wallet platforms to receive money are more likely not to have a savings account with the bank. Noting the cultural systems and social settings of the native households and the ease of payments via the mobile platform, they tend to spend more on consumption rather than saving, thus making these households more vulnerable during shocks such as natural disasters. Originality/value -While mobile money transfer is hailed as a revolution, no research has yet picked up the downside to it, that of undermining the very effort by policymakers to get low-income rural households to save. Secondly, this study also highlights how mobile money transfer deprives the banking system of a significant transfer fee income and a source of funds to pool and lend to earn interest income. Furthermore, this study brings to the forefront a dichotomy about how a rural indigenous community sees the welfare and prosperity of their community much differently than what economics textbooks portray.
There is a global movement towards a sustainable agricultural system, given serious concerns for ... more There is a global movement towards a sustainable agricultural system, given serious concerns for the food security of future generations. However, despite this push, adopting sustainable agriculture practices has been poor, given that their positive effect is not directly evident to the farmers. In countries like Fiji, where the majority of the land is leased, not undertaking sustainable agriculture practices can lead to a crisis of food insecurity and degraded low-quality land returning to the land owners and future generations. This study utilizes the latest Agriculture Census data from Fiji to construct a non-parametric production frontier from which to estimate the levels of efficiency of each farmer. These efficiency scores are then decomposed to farmers engaged in Sustainable Agriculture Practices vis-à-vis those not undertaking any Sustainable Agriculture Practice (SAP). The results from efficiency analysis provide efficiency and productivity scores for each farmer. Further decomposing it by SAPs reveals the marked difference in efficiency and productivity scores between farmers who undertake SAPs and those who do not. The results demonstrate that those farmers who undertake SAP have efficiency and productivity levels substantially higher than those who do not. To push the sustainable agriculture agenda amongst the farmers and landowners, policymakers must demonstrate to the farmers that undertaking SAPs will not only maintain the quality of the foundation input soil but will have a significant positive effect on their farm efficiency, productivity, and thus profitability. By doing so, the interests of all stakeholders are merged, making adopting sustainable agriculture practices easier on all farms.
European journal of development studies, Feb 4, 2024
Food security remains one of the main goals for all countries worldwide. While several agencies h... more Food security remains one of the main goals for all countries worldwide. While several agencies have mobilized resources to achieve this goal, food insecurity remains a significant livelihood challenge in many developing countries. Therefore, in this paper, we examine some critical factors affecting the food security of rural agricultural households in Fiji using the latest Agricultural Census data. This study reveals that farmers' access to fishing grounds and non-timber forest resources can improve farming households' food security. The study also shows that while the government vigorously pursues a transition from subsistence agriculture towards commercial agriculture, improving market access and reducing transportation costs will significantly improve food security. Given the importance of regular cash income, the study also demonstrates that off-farm employment of household members, particularly larger-sized households, will substantially help to improve food security. Lastly, and most importantly, the government must quickly examine how it could mitigate challenges posed by climate change, as this could devastate food security via reduced food production.
Since 1997, the agricultural leases on Native land, issued under the 1976 Agricultural and Landlo... more Since 1997, the agricultural leases on Native land, issued under the 1976 Agricultural and Landlord Tenants Act (ALTA), began to expire. The sugar industry is the main commodity export earner for Fiji, directly contributing about 22% of the national GDP and supporting over 25% of the country's active labor force. Fiji exports 80% of its sugar production, earning on average of $250-300 million in foreign exchange annually. Several options have been suggested, including: non-renewal of leases, with the land reverting to Fijian owners; renewal of ALTA but with land rents pegged to the gross value of production instead of the unimproved capital value; sharecropping and contract wage arrangements; and abolishment of lease arrangement under ALTA with leases to be issued under an institutional arrangement guided by the Native Lands Trust Act (NLTA). The land tenure system adopted will have a significant impact not only on the efficiency of the sugar cane sector but also on Fiji's a...
Capital formation is key to long-term development of any country. However, capital formation in F... more Capital formation is key to long-term development of any country. However, capital formation in Fiji has been very low since the mid 1980s. The need for increasing capital formation in Fiji is further compounded by the fact that the availability of land and land-based resources for agricultural and industrial purposes are severely restricted due to the land tenure system and the current impasse. The excess supply of labour requires increasing amount of private and public capital. While the public sector has been playing its role, private sector investment growth has declined significantly over the years. This paper examines the trend and determinants of capital formation in Fiji. Key factors that affect capital formation in Fiji are identified and policy measures considered.
International journal of business and social research, 2013
Child labour use in developing countries has been increasing over the years. In general, it’s c... more Child labour use in developing countries has been increasing over the years. In general, it’s characterized by low wages and long hours of work under dangerous, hazardous, unhealthy and unhygienic conditions, which could lead to poor physical and mental development. It deprives a child of education and natural development. In this paper, we examined the use of child labour in Fiji. The study utilized primary data collected using a structured survey to examine the determinants of child labour. The results from this study demonstrate that the variables such as household size, household income, and the gender of children significantly affect child labour supply. Furthermore, absence of adults from households is also a causal factor contributing towards child labour. Using these results, we make a case for “luxury†and “substitution†axioms for Fiji’s Child labour market.
South African Journal of Economic and Management Sciences, 1999
Small developing countries have for long acquired significant benefits through preferential tradi... more Small developing countries have for long acquired significant benefits through preferential trading arrangements. However, these benefits have led to a proliferation of inefficient industries in the recipient countries. With the recent changes in the GAIT, these inefficient industries may close and thus lead to major economic and social problems in the recipient countries. This paper utilizes the frontier production function approach to examine the efficiency status of Fiji's sugar industry. The analysis reveals that a significant level of inefficiency exists at the farm level of Fiji's sugar industry. Some of the factors that were found to effect the level of efficiency are farming status, land class and ethnicity. These factors are then used to derive policy implications.
International Journal of Economics and Finance, 2013
In an increasingly competitive market, the corporate sectors in small developing countries are ad... more In an increasingly competitive market, the corporate sectors in small developing countries are adopting a number of strategies to deal with raising efficiency and productivity. One such strategy is consolidation, that is, mergers and acquisitions. One of the primary motive to undertake a merger is to gain the synergy that would accrue from more efficient management, economies of scale and scope, removal of duplication of resources, utilization of resources to their full potential, and improved production techniques. This study examines the basis of mergers and acquisitions (M&A) and utilizing two recent cases of M & A applications, provides a theoretical and practical basis to decide on whether mergers and acquisitions will be allowed or not. In doing so, we demonstrate the process and methodologies utilized to assess and examine an M & A application. The first case involves a conglomerate merger in the beverage industry while the other involves an acquisition in the same industry. In both the cases, the M & A application was cleared. In the first case, the merger involved two different kinds of beverage activity -alcoholic and soft drinks beverage hence there was no effect on the market share of the individual products. In the second case, while the acquisition was in the same industry, a detailed financial analysis of the acquired firm reveals that it is a "failing firm", and therefore, in the public interest, the acquisition needs to be cleared.
International Journal of Economics and Business Research, 2011
In most small developing countries, the public sector is struggling to provide an optimum level o... more In most small developing countries, the public sector is struggling to provide an optimum level of public goods to the citizens. A particularly important good is water. Safe drinking water has been recognised as a basic need for a long time. Inadequate supply of safe water can have major health implications and Fiji has faced serious problem with respect to the supply of water to its general population. In this paper, we examine the case of two urban cities and one town where disruptions to the supply of drinking water are a frequent occurrence. The severity of the problem is measured together with the strategies employed by the affected households to cope with the problem. We found that households are willing to pay more to secure better services. Utilising an established econometrics approach, the determinants of the willingness to pay are also identified.
Introduction. The objective of this study was to perform an economic analysis in terms of annual ... more Introduction. The objective of this study was to perform an economic analysis in terms of annual national human capital resource loss from young stroke mortality in Fiji. The official retirement age is 55 years in Fiji. Method. Stroke mortality data, for working-age group 15-55 years, obtained from the Ministry of Health and per capita national income figure for the same year was utilised to calculate the total output loss for the economy. The formula of output loss from the economy was used. Results. There were 273 stroke deaths of which 53.8% were of working-age group. The annual national human capital loss from stroke mortality for Fiji for the year was calculated to be F$8.85 million (US$5.31 million). The highest percentage loss from stroke mortality was from persons in their forties; that is, they still had more then 10 years to retirement. Discussion. This loss equates to one percent of national government revenue and 9.7% of Ministry of Health budget for the same year. The a...
Sri Lankan Journal of Agricultural Economics, 2011
Productivity differences between tenant and owner operated farms have often been investigated usi... more Productivity differences between tenant and owner operated farms have often been investigated using traditional methods. All these studies compute the partial productivity differences between the two farm ownership types. This paper takes the analysis one step further by examining the differences in efficiency among these two farm types. A stochastic frontier production function analysis reveals significant differences between the two farms with respect to input usage, productivity and technical efficiency. Factors causing the differences are identified and policy implications drawn..
Small island nations in the South Pacific are facing a serious problem of loss of human capital. ... more Small island nations in the South Pacific are facing a serious problem of loss of human capital. The loss of skilled and qualified personnel from the small pool is causing a major setback in terms of providing the technical expertise to forge ahead with reform programs that these economies are undertaking. Fiji's policymakers are increasingly confronting this issue, because the nation has experienced a massive outflow of skilled labor following the political instability in 1987. While there is an outflow of skilled labor, the country is also losing a large amount of financial capital. The extent of the outflow has yet to be measured due to lack of a methodology. This study advances a methodology to measure the loss to the economy arising out of human capital loss in a small island economy.
Uploads
Papers by Mahendra Reddy