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Growth and Productivity in Papua New Guinea

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  • Mr. Ebrima A Faal

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.

Suggested Citation

  • Mr. Ebrima A Faal, 2006. "Growth and Productivity in Papua New Guinea," IMF Working Papers 2006/113, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/113
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    References listed on IDEAS

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    Cited by:

    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. Peter Biggs, 2007. "The financial sector in Papua New Guinea — A good case of reform," Economic Roundup, The Treasury, Australian Government, issue 3, pages 73-94, September.

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    Keywords

    WP; TFP growth; GDP;
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