Growth and Productivity in Papua New Guinea
IMF Working Papers, May 1, 2006
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- Growth and Productivity in Papua New Guinea
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Bibliographic details
- Authors: Ebrima A Faal
- Published: May 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863734.001
Summary and main findings
- The paper examines Papua New Guinea's historical economic growth patterns through a simple growth accounting framework.
- Swings in growth are mostly accounted for by:
- a significant slowdown in capital input; and
- lower Total Factor Productivity (TFP) growth.
- Raising real GDP growth will require increases in both investment levels and productivity.
- With a ratio of investment to GDP of 13 percent during the last decade, significantly higher productivity growth and investment will be needed to sustain GDP growth rates at 5 percent or higher.
- Historical performance indicates that, in the absence of structural reforms and strong institutions, higher rates of productivity growth will be hard to achieve.
Policy implications and analysis
- Achieving and sustaining higher real GDP growth implies simultaneous policy focus on:
- raising the investment-to-GDP ratio above the historical 13 percent; and
- implementing structural reforms to boost TFP growth.
- Strengthening institutions is highlighted as necessary to enable higher productivity growth.
Content in this bundle
- Growth and Productivity in Papua New Guinea; Ebrima Faal; IMF Working Paper 06/113; May 1, 2006