Trends and determinants of capital formation in Fiji

Abstract

Capital formation is key to long-term development of any country. However, capital formation in Fiji has been very low since the mid 1980s. The need for increasing capital formation in Fiji is further compounded by the fact that the availability of land and land-based resources for agricultural and industrial purposes are severely restricted due to the land tenure system and the current impasse. The excess supply of labour requires increasing amount of private and public capital. While the public sector has been playing its role, private sector investment growth has declined significantly over the years. This paper examines the trend and determinants of capital formation in Fiji. Key factors that affect capital formation in Fiji are identified and policy measures considered. Show more