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Are the Asia and Pacific Small States Different from Other Small States?
Author: Ms. Patrizia Tumbarello, Ezequiel Cabezon, and Mr. Yiqun Wu
Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 123
Language:
English
Publication Date:
22 May 2013
DOI:
https://doi.org/10.5089/9781484339190.001
ISBN:
9781484339190
ISSN:
1018-5941
Pages:
29
Keywords:
WP; IMF staff calculation; micro state; country authorities; real GDP; Asia and Pacific; small states; micro states; Pacific islands; growth; volatility; Asia-Pacific small state government; ECCU country; effective purchasing power; Pacific region; small states-Asia; country information; Income; Terms of trade; Government consumption; Climate change
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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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The small states of the Asia and Pacific region face unique challenges in raising their growth potential and living standards relative to other small states due to their small populations, geographical isolation and dispersion, narrow export and production bases, exposure to shocks, and heavy reliance on aid. Higher fixed government costs, low access to credit by the private sector, and capacity constraints are also key challenges. The econometric analysis confirms that the Pacific Island Countries (PICs) have underperformed relative to their peers over the last 20 years. Although these countries often face more limited policy tools, policies do matter and can further help build resilience and raise potential growth, as evidenced in the recent business cycle. The Asia and Pacific small states should continue rebuilding buffers and improve the composition of public spending in order to foster inclusive growth. Regional solutions should also continue to be pursued.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund