Sectoral labour productivity and economic competitiveness in New Caledonia

Serge Rey and Catherine Ris

Economie et Statistique / Economics and Statistics, 2018, issue 499, 29-53

Abstract: [eng] A small island economy, New Caledonia stands out among other French overseas territories, and even more so the islands of Oceania, for its high standard of living and human development. However, it also suffers from the disadvantages common to small island economies (remoteness, small market size, etc.). The slowdown in growth observed over the last few years reveals how the New Caledonian model of “extensive” growth is losing pace overall: producing more from more of inputs to satisfy the domestic demand, protecting itself from international competition in the process, and drawing largely on nickel mining. This article aims to assess the competitiveness of New Caledonia's economy. It puts forward labour productivity indicators for the main market sectors of the New Caledonian economy from 1992 to 2014 to derive changes in unit costs and finally in real exchange rates. It shows that labour productivity has tended to stagnate since the early 2000s, while at the same time increases in minimum wage contribute to an increase in unit costs and a decline in competitiveness.

JEL-codes: O13 O40 O56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Sectoral labour productivity and economic competitiveness in New Caledonia (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:nse:ecosta:ecostat_2018_499_2

DOI: 10.24187/ecostat.2018.499s.1938

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