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Sectoral labour productivity and economic competitiveness in New Caledonia
[Productivité sectorielle du travail et compétitivité de l’économie de la Nouvelle-Calédonie]

Author

Listed:
  • Serge Rey

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Catherine Ris

    (LARJE - Laboratoire de Recherches Juridique et Economique - UNC - Université de la Nouvelle-Calédonie)

Abstract

A small island economy, New Caledonia stands out amidst 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.

Suggested Citation

  • Serge Rey & Catherine Ris, 2018. "Sectoral labour productivity and economic competitiveness in New Caledonia [Productivité sectorielle du travail et compétitivité de l’économie de la Nouvelle-Calédonie]," Post-Print hal-01885277, HAL.
  • Handle: RePEc:hal:journl:hal-01885277
    DOI: 10.24187/ecostat.2018.499s.1938
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    References listed on IDEAS

    as
    1. Vincent Dropsy & Christian Montet, 2018. "Economic growth and productivity in French Polynesia: a long-term analysis," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 499, pages 5-27.
    2. Vincent Dropsy & Christian Montet, 2018. "Economic growth and productivity in French Polynesia [Croissance économique et productivité en Polynésie française]," Post-Print hal-02132305, HAL.
    3. Van Biesebroeck, Johannes & De loecker, Jan, 2016. "The effect of international competition on firm productivity and market power," CEPR Discussion Papers 11114, C.E.P.R. Discussion Papers.
    4. Kurt Graden Lunsford, 2017. "Productivity Growth and Real Interest Rates in the Long Run," Economic Commentary, Federal Reserve Bank of Cleveland, issue November.
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    Cited by:

    1. Serge Rey & Sofiane Hazem, 2020. "Labor Productivity and Economic Growth in a Hydrocarbon-Dependent Economy: The Algerian Case, 1984–2015," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 587-611, July.

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    More about this item

    Keywords

    New Caledonia; Labour productivity; Price/cost competitiveness; Nickel industry;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

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