Agricultural productivity change in Pacific island countries

Abstract

Agricultural productivity growth in Fiji, Papua New Guinea, Solomon Islands, Tonga and Vanuatu is estimated for the period 1970 to 2002. The multiple factor productivity measure, total factor productivity (TFP), and two partial productivity measures, labour productivity and land productivity, are calculated. None of the five countries achieved significant TFP growth over the period studied. Papua New Guinea achieved growth in labour productivity, and land productivity grew significantly in Papua New Guinea and Solomon Islands. Favourable resource endowments appear to be necessary but not sufficient to achieve substantial productivity growth. The country best endowed with natural resources, Papua New Guinea, achieved gains in all three productivity measures after 1974, as did Solomon Islands after 1987. Several options for raising farm-level productivity are briefly canvassed, including investment in human capital and rural infrastructure, agricultural research and extension, land tenure reform, provision of financial services, diversification of farming activities, management of natural resources, and institutional reform.