The Long-Run Impact of Coups on Fiji's Economy: Evidence from a Computable General Equilibrium Model

Journal of International Development, Vol. 19, No. 2, pp. 149-160, 2007

Posted: 10 Jun 2012

See all articles by Paresh Kumar Narayan

Paresh Kumar Narayan

Deakin University - School of Accounting, Economics and Finance

Biman Prasad

University of the South Pacific - Department of Economics; University of the South Pacific - Oceania Development Network

Date Written: 2007

Abstract

Coups have been used as a weapon to overthrow democratic governments in Fiji since 1987. The post-1987 period has been one of the most volatile ones in Fiji's history, in that it has undergone 15 changes in government. In this paper, we analyze the long run economy-wide impact of the May 2000 coup on Fiji's economy. This goal is achieved by using the computable general equilibrium model, which is at the forefront of 'impact studies'. We find that coups will have an adverse impact on the Fijian economy: real GDP will fall by around 8 per cent, real national welfare will fall by around 7 per cent and real consumption will fall by around 2 percent in the long-run.

Suggested Citation

Narayan, Paresh Kumar and Prasad, Biman, The Long-Run Impact of Coups on Fiji's Economy: Evidence from a Computable General Equilibrium Model (2007). Journal of International Development, Vol. 19, No. 2, pp. 149-160, 2007, Available at SSRN: https://ssrn.com/abstract=2080814

Paresh Kumar Narayan (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

Biman Prasad

University of the South Pacific - Department of Economics ( email )

Private Bag, Laucala Campus
Suva
Fiji

University of the South Pacific - Oceania Development Network ( email )

Suva
Fiji

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