This paper examines the role of inflation expectations in Solomon Islands, a Pacific Island Country, using the Hybrid New Keynesian Phillips Curve model. The study applies the Generalized Method of Moments to estimate the Hybrid New Keynesian Philips Curve model using quarterly time series data...

This article investigates the determinants of Net Interest Margins (NIM) of banks in Fiji, a Small Island Developing State (SIDS) in the South Pacific, over the period 2000-2010. Based mainly on the Ho and Saunders' (1981) dealership model and extensions thereto, this study uses a number of...

The widespread failures in the financial sector during the Global Financial Crisis prompted many governments worldwide to re-intervene in a market that had become increasingly state-free over the years. The re-intervention, however, has re-ignited a global debate on the role of the state in...

Motivated by the Sharma and Gounder (2012b) finding that deposits may play a key role in enhancing bank credit to private sector in the Pacific, this study investigates a pertinent gap in the literature — the efficiency of banks in the region in converting deposits into credit. Data...

A body of evidence accumulated over the past several years, via different methods and estimation techniques, using firm –and household-level data, across many regions and countries show that finance matters for growth. Yet the role of finance in fostering growth in the Pacific, ironically, a...

This is the first study to simultaneously estimate the influence of market power and efficiency on profitability of banks in a Pacific Island context. Two market power hypotheses — the Structure-Conduct-Performance (SCP) and the Relative-Market-Power (RMP) hypotheses together with two measures...

Banks in the small island developing states of the Pacific have not only survived the Global Financial Crisis but remain strong and profitable raising the question: what determines the strong profitability of banks in the PICs? Moreover, despite the large and extended literature on the subject,...

In view of the prominent law-finance-economic growth theory and the continuing debate over it, this paper examines the applicability of the law–stock market development nexus in Fiji, an island economy in the South Pacific region, where economic growth performance has generally been considered...

Sustainable development has been an important but elusive goal for the highly vulnerable small states in the South Pacific. Events such as the current global financial crisis are likely to make this goal more elusive as the generous developed world donors, affected themselves, are compelled to...

Does finance really lead to economic growth? A growing strand of literature finds positive and strong link between finance and growth. On the other hand, research has also questioned the robustness of the finance – growth nexus. Generally, however, there is some consensus that finance –...