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Caribbean Growth in an International Perspective: The Role of Tourism and Size
Author:
Ms. Nita Thacker
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Mr. Sebastian Acevedo Mejia
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Mr. Roberto Perrelli null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 235
Language:
English
Publication Date:
27 Sep 2012
DOI:
https://doi.org/10.5089/9781475510898.001
ISBN:
9781475510898
ISSN:
1018-5941
Pages:
35
Keywords:
WP; government spending; TFP growth; Caribbean; tourism; size; growth; productivity; capital accumulation; TFP decline; TFP ratio; growth rate; TFP component; economic growth; Total factor productivity; Public expenditure review; Production growth
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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After earlier success, growth performance in most Caribbean countries has been disappointing since the early 1990s. With slower growth, output has fallen behind that of relevant comparator countries. This paper analyzes the growth experience of the Caribbean countries from a cross country perspective. Three findings stand out. First, the slowdown in growth is explained more by a decline in productivity rather than a lack of investment. Second, tourism has been a significant contributor to higher growth (through both capital accumulation and productivity) and lower output volatility, and in many countries there is scope for further expansion of this sector. Third, the small size and the fact that most of these countries are islands have limited growth. Policies aimed at improving productivity, further development of the tourism sector, and regional integration could pay dividends in terms of higher growth in the region.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund