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Sectoral balances, savings and investment in Solomon Islands

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Wood, Keith

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Crawford School of Public Policy, The Australian National University
Asia Pacific Press

Abstract

The Solomon Islands fiscal deficit widened to a dramatic and clearly unsustainable degree over 1989?1991. The driving force behind this development has been growth in current rather than capital expenditures, with an increasing resort to domestic rather than foreign financing, imposing strains (given savings) on both domestic borrowing for investment and the balance of payments.

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Source

Pacific Economic Bulletin, Vol. 9 , No. 1, 1994

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