Growth and Productivity in Papua New Guinea

30 Pages Posted: 21 Jun 2006

Date Written: May 2006

Abstract

This paper has examined Papua New Guinea's historical economic growth patterns through a simple growth accounting framework. The analysis shows that swings in growth are mostly accounted for by a significant slowdown in capital input and lower Total Factor Productivity (TFP) growth. It also suggests that raising real GDP growth will require increases in both investment levels and productivity. With a ratio of investment to GDP of 13 percent during the last decade, significantly higher productivity growth and investment will be needed to sustain GDP growth rates at 5 percent or higher. The historical performance also indicates that, in the absence of structural reforms and strong institutions, higher rates of productivity growth will be hard to achieve.

Keywords: GDP Growth, Total Factor Productivity, Papua New Guinea

JEL Classification: E25, E31, E32, E37

Suggested Citation

Faal, Ebrima, Growth and Productivity in Papua New Guinea (May 2006). IMF Working Paper No. 06/113, Available at SSRN: https://ssrn.com/abstract=910678

Ebrima Faal (Contact Author)

African Development Bank ( email )

Tunis
Tunisia
+216 7110 3775 (Phone)

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