{
  "title": "Paradise Lost? Growth, Convergence and Migration in the South Pacific",
  "publication": "IMF Working Papers, March 1, 1995",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/paradise-lost-growth-convergence-and-migration-in-the-south-pacific-1076",
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  "summary": "This paper examines the determinants of growth for nine South Pacific countries during the period 1971-93, using the analytical framework of the Solow-Swan neoclassical growth model.",
  "sections": [
    {
      "heading": "Overview and scope",
      "content": "- Examines determinants of growth for nine South Pacific countries during the period 1971-93.\n- Uses the analytical framework of the Solow-Swan neoclassical growth model.\n- Applies Chamberlain’s II-matrix estimator to:\n  - account for unobserved country-specific heterogeneity in the growth process, and\n  - control for errors-in-variables bias in calculations of real per-capita GDP.\n- Controls for the regional effects of net international migration."
    },
    {
      "heading": "Key empirical findings",
      "content": "- The speed of convergence of South Pacific countries to their respective steady-state levels of per-capita GDP, after controlling for net international migration, is estimated at a relatively fast 4 percent per year.\n- Private and official transfers emanating from regional donor countries have kept the dispersion of real per-capita national disposable income constant over the period.\n- This stability in disposable income dispersion occurred despite a significant widening in the regional dispersion of real per-capita GDP."
    },
    {
      "heading": "Methodology and data notes",
      "content": "- Sample: nine South Pacific countries.\n- Sample period: 1971-93.\n- The study employs Chamberlain’s II-matrix estimator to manage:\n  - unobserved country-specific heterogeneity, and\n  - errors-in-variables bias for real per-capita GDP calculations.\n- Analytical framework: Solow-Swan neoclassical growth model.\n- Regional factor explicitly modeled: net international migration."
    },
    {
      "heading": "Policy-relevant implications (as presented in the paper)",
      "content": "- Net international migration materially affects measured convergence rates and should be controlled for in regional growth analyses.\n- Private and official transfers from regional donor countries play a stabilizing role for real per-capita national disposable income across the region."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Authors: Norman Loayza, Paul Cashin\n- Date: March 1, 1995\n- Pages: 42\n- Series: Working Paper No. 1995/028\n- Issue: 028\n- DOI: https://doi.org/10.5089/9781451844603.001\n- Stock No: WPIEA0281995\n- ISBN: 9781451844603\n- ISSN: 1018-5941\n- Subjects: Disposable income, Expenditure, Migration, National accounts, National income, Personal income, Population and demographics, Public expenditure review\n- Keywords: Australia and New Zealand, Disposable income, growth rate, II-matrix estimation procedure, island economies of the South Pacific, Island economy, Migration, National income, per-capita GDP, per-capita income, Personal income, procedure consist, Public expenditure review, rate of growth, time series, WP\n\nInternational Monetary Fund — Paradise Lost? Growth, Convergence and Migration in the South Pacific (IMF Working Paper No. 1995/028).\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/paradise-lost-growth-convergence-and-migration-in-the-south-pacific-1076"
    }
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    "Authors: Norman Loayza, Paul Cashin",
    "Published: March 1, 1995",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451844603.001",
    "Examines determinants of growth for nine South Pacific countries during the period 1971-93.",
    "Uses the analytical framework of the Solow-Swan neoclassical growth model.",
    "Applies Chamberlain’s II-matrix estimator to:",
    "Controls for the regional effects of net international migration.",
    "The speed of convergence of South Pacific countries to their respective steady-state levels of per-capita GDP, after controlling for net international migration, is estimated at a relatively fast 4 percent per year.",
    "Private and official transfers emanating from regional donor countries have kept the dispersion of real per-capita national disposable income constant over the period.",
    "This stability in disposable income dispersion occurred despite a significant widening in the regional dispersion of real per-capita GDP.",
    "Sample: nine South Pacific countries.",
    "Sample period: 1971-93.",
    "The study employs Chamberlain’s II-matrix estimator to manage:",
    "Analytical framework: Solow-Swan neoclassical growth model.",
    "Regional factor explicitly modeled: net international migration.",
    "Net international migration materially affects measured convergence rates and should be controlled for in regional growth analyses.",
    "Private and official transfers from regional donor countries play a stabilizing role for real per-capita national disposable income across the region.",
    "Authors: Norman Loayza, Paul Cashin",
    "Date: March 1, 1995",
    "Pages: 42",
    "Series: Working Paper No. 1995/028",
    "Issue: 028",
    "DOI: https://doi.org/10.5089/9781451844603.001",
    "Stock No: WPIEA0281995",
    "ISBN: 9781451844603",
    "ISSN: 1018-5941",
    "Subjects: Disposable income, Expenditure, Migration, National accounts, National income, Personal income, Population and demographics, Public expenditure review",
    "Keywords: Australia and New Zealand, Disposable income, growth rate, II-matrix estimation procedure, island economies of the South Pacific, Island economy, Migration, National income, per-capita GDP, per-capita income, Personal income, procedure consist, Public expenditure review, rate of growth, time series, WP"
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