Economic growth in Papua New Guinea: some empirical evidence

Abstract

This article presents econometric results of economic growth in Papua New Guinea on the basis of annual time-series data covering the period 1970?92. The results do not show any statistically significant evidence of investments in physical and human capital contributing to economic growth. Exports and stable exchange rates have positively contributed to economic growth, while high inflation and high government consumption have, statistically, significantly depressed economic growth. There is weak evidence of the external economic environment and social and political instability having adverse effects on economic growth.