• Home
• Library
• DRO home

An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji Narayan, Paresh Kumar 2008, An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji, International journal of social economics, vol. 35, no. 12, pp. 1017-1031. Title An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji Author(s) Narayan, Paresh Kumar Journal name International journal of social economics Volume number 35 Issue number 12 Start page 1017 End page 1031 Publisher Emerald Group Publishing Place of publication Bradford, England Publication date 2008 ISSN 0306-8293 1758-6712 Keyword(s) Fiji democracy investments economic equilibrium Summary Purpose – The purpose of this paper is to construct an econometric model of the determinants of private investment with a particular focus on the impact of democracy on investment. Design/methodology/approach – The first step was to econometrically derive the long-run elasticities; then to modify the Fiji computable general equilibrium (CGE) model to incorporate the investment function. Also the econometrically derived long run elasticities in the CGE model were used. Findings – It was found that democracy has a positive and statistically significant impact on private investment in Fiji. The paper's simulation of Fiji becoming a fully democratic country on investment and other macroeconomic fundamentals, based on a CGE model, reveals that real gross domestic product and real national welfare increase by around 0.01 and 0.05 per cent, respectively; government savings and revenue performance improves; there is a trade balance surplus; and both private consumption and disposable income increase by around 0.05 and 0.12 per cent, respectively. Originality/value – This is the first study that uses a CGE model to examine the impact of democracy, via investment, on other macroeconomic fundaments. No other study is known to have modelled democracy in a CGE framework. Language eng Field of Research 140299 Applied Economics not elsewhere classified HERDC Research category C1 Refereed article in a scholarly journal HERDC collection year 2008 Copyright notice ©2008, Emerald Group Publishing Limited Persistent URL http://hdl.handle.net/10536/DRO/DU:30017822 Document type: Journal Article Collection: School of Accounting, Economics and Finance Related Links Link Description Connect to published version (restricted access) Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Fri, 14 Aug 2009, 13:57:34 EST Wed, 09 Sep 2009, 10:41:47 EST Wed, 09 Sep 2009, 10:46:10 EST Wed, 09 Sep 2009, 10:47:24 EST Mon, 12 Apr 2010, 11:27:17 EST Filtered Full Access Statistics: 510 Abstract Views, 2 File Downloads  -  Detailed Statistics Created: Fri, 14 Aug 2009, 13:57:33 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.