摘要：Foreign aid and remittance inflows have been playing major roles in the economicgrowth and development of Pacific island countries (PICs). However, the relationshipbetween these international capital inflows and export competitiveness of PICs has not beenadequately studied. It is generally held that such capital transfers tend to hurt exports, aphenomenon known as Dutch disease. The objective of this paper is to examine the validityof the Dutch disease hypothesis in PICs with a case study of Fiji. Employing the boundstesting procedure, this empirical study reveals that inflows of both foreign aid andremittances have been contributing to the appreciation of Fiji’s currency. The studyestablishes the validity of the Dutch disease hypothesis as far as Fiji is concerned.
关键词：Foreign Aids; Remittances; Export Competitiveness; Cointegration;Granger Causality Test
