Pacific island countries have been affected by the ongoing global economic downturn. The impact of recessionary effects has not been uniform as the degree of global interdependence varies amongst Pacific island countries. By employing a vector autoregression (VAR) model, this paper investigates...

The financial and banking crises in USA in late 2007 led to a decline in economic activities in the industrialized countries, triggering a world-wide recession since then. The ongoing global economic downturn has brought into sharp focus the subject of macroeconomic interdependence of Pacific...

Resorting to panel data investigation, this study seeks to test the causal relationships between current account imbalances and budget deficits in Pacific island countries. The study findings are that current account imbalances and budget deficits are cointegrated, although there is no long run...