Growth Strategies and Diversification in the Pacific Islands Countries
IMF Working Papers, June 13, 2025
Source details
- Canonical URL
- Growth Strategies and Diversification in the Pacific Islands Countries
Other formats
Bibliographic details
- Authors: Gabriela Cugat
- Published: June 13, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229013437.001
Main findings on tourism and growth
- Quantified the contribution of tourism to growth using panel regressions.
- Computed how much additional tourism would be needed for Pacific Island Countries (PICs) to sustain comparators’ growth rates.
- Found that the scaling ups in tourism required to match comparators’ growth rates are sizable.
Diversification analysis and results
- Considered an alternative growth strategy based on diversification given the large tourism scaling-ups required.
- Identified diversification episodes in the PICs.
- Quantified the benefits of diversification episodes using the synthetic control method.
- Concluded that diversification episodes have had mixed results for PICs.
Framework for designing growth strategies
- Proposed a framework based on:
- Diagnosing the binding constraints to PICs’ economic expansion.
- Designing strategies that work around these limitations.
Subjects and keywords (as listed)
- Subjects: Economic sectors, Environment, Export diversification, Exports, International trade, Natural disasters, Tourism
- Keywords: Annex II, Caribbean, diversification, diversification episode, Export diversification, Exports, growth, growth strategy, IMF exports diversification toolkit, Natural disasters, Pacific Islands, Pacific Islands countries, Tourism, tourism-led strategy
Content in this bundle
- Working Paper