THE IMPLICATIONS OF EUROPEAN UNION SUGAR PRICE CUTS, ECONOMIC PARTNERSHIP AGREEMENT, AND DEVELOPMENT AID FOR FIJI

Renuka Mahadevan and John Asafu‐adjaye
Authors registered in the RePEc Author Service: John Asafu-Adjaye

Contemporary Economic Policy, 2010, vol. 28, issue 1, 52-64

Abstract: The objective of this paper is to use a set of varied scenarios related to the Economic Partnership Agreement (EPA) and the loss of European Union (EU) sugar preferences (in the form of partial and full price liberalization) in combination with the recently committed EU development aid to examine the impact on Fiji using a dynamic computable general equilibrium model. It is shown that without aid, the loss of sugar preferences has devastating impact on real output, exports, rural employment, and other macroeconomic indicators. Without aid, the EPA scenarios, on the other hand, lead to some growth in real output but depress rural employment and non‐sugar agricultural exports. Although improvements are observed across the scenarios with aid, it is argued that aid would be more effective if it directly addresses the supply‐side constraints in Fiji instead of focusing on the sugar sector. (JEL C68, D58, F17, O56)

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1465-7287.2009.00156.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:28:y:2010:i:1:p:52-64

Ordering information: This journal article can be ordered from
https://ordering.onl ... 5-7287&ref=1465-7287

Access Statistics for this article

Contemporary Economic Policy is currently edited by Brad R. Humphreys

More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().