This paper customizes to the Tongan economy a macroeconomic model for medium-term quarterly projections of key macro variables (QPM): output, inflation, interest rate, and exchange rate. The model is calibrated to embody the specific attributes of the Tongan economy such as the persistence of...

The IMF conducted a Technical Assistance mission to assist the National Reserve Bank of Tonga (NRBT) in modernizing its monetary policy framework. The mission aimed to address persistent challenges such as excess liquidity and an inactive interbank market, which have impeded effective monetary...

The background of high remittance costs and countermeasures against the issue has drawn the attention of policymakers in the Pacific island countries in maximizing the benefits of migration and remittances on their economic development. We use a newly collected household survey about temporary...

Tonga's economic activity has strengthened, bolstered by consistent remittance flows, continued tourism recovery, and robust construction activities, despite a fall in agricultural output. The potential for a stronger recovery has, however, been hindered by supply-side constraints including...

The 2023 Article IV Consultation discusses that The Tongan economy is performing strongly, underpinned by resilient remittance inflows and major reconstruction activities following the Hunga Tonga-Hunga Haʻapai volcanic eruption in January 2022. The authorities are confronting a challenging...

Abstract This study explores the role of proverbs as a conflict management tool among the Tonga people of Southern Zambia. Using qualitative research methods, including in-depth interviews and focus group discussions, the study examines how Tonga proverbs are employed to mediate and resolve...

Tonga's nascent economic recovery following Tropical Cyclone Harold and border closures in early 2020 has been severely disrupted by a double blow from the Hunga Tonga-Hunga Haʻapai volcanic eruption and the first local outbreak of COVID-19 at the start of 2022. The authorities are augmenting...

Tonga's recovery following the devastation of the 2018 Cyclone Gita has been derailed by a double blow from the pandemic and Cyclone Harold. FY2020 GDP growth is estimated to fall to -2 1\2 percent due to domestic containment measures, a sudden stop in tourism, and investment delays. The full...

This departmental paper provides an in-depth overview of access to climate finance for Pacific Island Countries, evaluating successes and challenges faced by countries and proposes a way forward to unlock access to climate funds

“Trade Policy Reviews" analyse the trade policies and practices of each member of the WTO. The reviews consist of three parts: an independent report by the WTO Secretariat, a report by the government, and the concluding remarks by the Chair of the WTO’s Trade Policy Review Body. The opening...

Tonga is one of the world's most exposed countries to climate change and natural disasters. It suffered the highest loss from natural disasters in the world (as a ratio to GDP) in 2018 and is among the top five over the last decade (Table 1). Climate change will make this worse. Cyclones will...

Many economists believe that the returns to migration are high. However, credible experimental estimates of the benefits of migration are rare, particularly for low-skilled international migrants and their families. This paper studies a natural experiment in Bangladesh, where low-skilled male...

This paper evaluates and compares two randomized interventions in Tonga, one targeting the home environment of children up to age 5 and one targeting the school environment for first and second grade students. The first intervention supports communities to set up and run playgroups that aim to...

This 2017 Article IV Consultation highlights that over recent years, Tonga has enjoyed robust growth and macroeconomic stability. Growth continued to be strong at 2.7 percent in FY2017 following 3.4 percent in FY2016, supported by construction, agriculture, tourism, strong remittances, and...

This paper evaluates and compares two randomized interventions in Tonga, one targeting the home environment of children up to age 5 and one targeting the school environment for first and second grade students. The first intervention supports communities to set up and run playgroups that aim to...

This study examines the long-term impacts of international migration by comparing immigrants who had successful ballot entries in a migration lottery program, and first moved almost a decade ago, with people who had unsuccessful entries into those same ballots. The long-term gain in income is...

Seasonal migration programs are widely used around the world, and are increasingly seen as offering a potential "triple-win" -- benefiting the migrant, sending country, and receiving country. Yet there is a dearth of rigorous evidence as to their development impact, and concerns about whether...

Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on...

The impacts of international migration on development in the sending countries, and especially the effects on remaining household members, are increasingly studied. However, comparisons of households in developing countries with and without migrants are complicated by a double-selectivity...

Identifying cost-effective interventions to improve early literacy is vital to developing countries, given the importance of early literacy for an individual's future education outcomes and subsequent human capital formation. This paper presents the impact on early grade reading outcomes of two...

Identifying cost-effective interventions to improve early literacy is vital to developing countries, given the importance of early literacy for an individual's future education outcomes and subsequent human capital formation. This paper presents the impact on early grade reading outcomes of two...

This paper studies how migration from a poor to a rich country affects key economic beliefs, preference parameters, and transnational household decision-making efficiency. The setting is the migration of Tongans to New Zealand through a migration lottery program. In a 10-year follow-up survey of...

Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labor shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand's new Recognized...

The social and economic consequences of poor mental health in the developing world are presumed to be significant, yet are largely under-researched. The authors argue that mental health modules can be meaningfully added to multi-purpose household surveys in developing countries, and used to...

People migrate to improve their well-being, whether through an expansion of economic and social opportunities or a reduction in persecution. Yet a large literature suggests that migration can be a stressful process, with potentially negative impacts on mental health, reducing the net benefits of...

This paper studies how migration from a poor to a rich country affects key economic beliefs, preference parameters, and transnational household decision-making efficiency. The setting is the migration of Tongans to New Zealand through a migration lottery program. In a 10-year follow-up survey of...

Given the increasing frequency and severity of extreme weather events, it is useful to understand the lessons learned from recent natural disasters in Ha’apai, Tonga, and Christchurch, New Zealand. Despite vastly different circumstances, the two experiences demonstrate that power outages can...

We study how migration from a poor to a rich country affects key economic beliefs, preference parameters, and transnational household decision-making efficiency. Our setting is the migration of Tongans to New Zealand through a migration lottery program. In a ten-year follow-up survey of...

Pacific Island Countries (PICs) are already experiencing the adverse impact of climate change yet often lack (human and financial) resources to meet the challenges of changing climatic conditions. This paper examines adaptation aid committed to recipient countries in the Pacific between 2010 and...