A re-examination of private consumption in Fiji

Abstract

The Reserve Bank of Fiji has claimed that private consumption expenditure in Fiji has grown considerably in recent years. For policy purposes, it is important to understand the determinants of consumption in Fiji. This article uses time series techniques to estimate the determinants of real private consumption for Fiji from annual data for the period 1975-2005. It is found that income and the availability of consumer credit are significant determinants of consumption.