Caribbean Growth in an International Perspective : The Role of Tourism and Size

Author/Editor:

Nita Thacker ; Roberto Perrelli ; Sebastian Acevedo Mejia

Publication Date:

September 27, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

After earlier success, growth performance in most Caribbean countries has been disappointing since the early 1990s. With slower growth, output has fallen behind that of relevant comparator countries. This paper analyzes the growth experience of the Caribbean countries from a cross country perspective. Three findings stand out. First, the slowdown in growth is explained more by a decline in productivity rather than a lack of investment. Second, tourism has been a significant contributor to higher growth (through both capital accumulation and productivity) and lower output volatility, and in many countries there is scope for further expansion of this sector. Third, the small size and the fact that most of these countries are islands have limited growth. Policies aimed at improving productivity, further development of the tourism sector, and regional integration could pay dividends in terms of higher growth in the region.

Series:

Working Paper No. 12/235

Subject:

English

Publication Date:

September 27, 2012

ISBN/ISSN:

9781475510898/1018-5941

Stock No:

WPIEA2012235

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

35

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