An empirical investigation of the relationship between government revenue and expenditure : the case of the Fiji Islands

Purpose – Understanding the relationship between government revenue and government expenditure is important from a policy point of view, especially for a country like Fiji, which is suffering from persistent budget deficits. The aim of this paper is to investigate the relationship between government revenue and expenditure for Fiji.

Design/methodology/approach – The Johansen test for cointegration and Granger causality test are used to conduct the empirical analysis.

Findings – The key findings are that: government revenue and government expenditure in both the aggregate and disaggregate sense are cointegrated; in the short-run government expenditure Granger causes government revenue in an aggregate sense, departmental expenditure Granger causes aggregate revenue, and there is bidirectional causality running between government expenditure and customs duties; and in the long-run there is evidence of fiscal synchronization, implying that expenditure decisions are not made in isolation from revenue decisions.

Research limitations/implications – This fiscal synchronization has not been able curb the current account deficit in Fiji. Moreover, the confirmation of the spend-tax attitude of the government does not bode well for the level of investments and skilled human capital in Fiji as this may perpetuate tax increases in the future. Given that the Fiji Government is currently trying to rein in the escalating level of fiscal deficit, it is an opportune time for them to engage in extensive expenditure reforms.

Originality/value – The findings of this paper should allow policy makers to make informed decisions. Furthermore, the paper is different from others because apart from examining the revenue and expenditure in an aggregate sense, it also considers the different components of revenue and expenditure.

The monetary approach to understanding the balance of payments for the Fiji Islands

The monetary approach to the balance of payments postulates a unidirectional, negative causality running from domestic credit to net foreign assets. Using data for Fiji for the period 1974–2003, we find a statistically significant, negative correlation between domestic credit and net foreign assets; but the Granger causality test reveals no statistical evidence of causality running from domestic credit to net foreign assets. This finding suggests that domestic credit is mainly passive and is not the central tool of monetary policy to which the balance of payments adjusts.

Mixing metaphors : differences in the language and understanding of development policy in the Pacific Islands

The use of metaphors in the Pacific Islands reveal a discourse of representation and containment, which emphasizes ‘smallness’ in geographic, political and cultural aspects of development. Heather Wallace contrasts the language and strategies used by policymakers, particularly from Australia, to the understanding and knowledge of Pacific Islanders.

Southward range expansion of the Mourning Gecko Lepidodactylus lugubris on mainland Australia and nearshore islands

The Mourning Gecko Lepidodactylus lugubris is a species that colonises areas of human habitation and its spread is assisted by humans. This note documents southward range expansion of this species down the Queensland coast.

Three phases of the Pacific Islands Project (1995–2010)

The Pacific Islands Project (PIP), funded by AusAid and managed by the Royal Australasian College of Surgeons (RACS), has progressed through three phases from 1995 to 2010. During this time, it has sent over 520 teams to 11 Pacific Island Countries, providing over 60 000 consultations and some 16 000 procedures. In addition to this delivery of specialist medical and surgical services that were not previously available in-country, the project has contributed as a partner in capacity building with the Fiji School of Medicine and Ministries of Health of the individual nations. By 2011, Fiji School of Medicine, which began postgraduate specialist training in 1998, had awarded 51 doctors a diploma in surgery (1 year), 20 of whom had completed their Masters in Medicine (4 years). PIP was independently evaluated on completion of every phase, including the bridging Phase III (2006–2010). The project delivered on its design, to deliver services, and also helped build capacity. The relationship established with the RACS throughout the project allowed Pacific Island graduates to access the Rowan Nicks scholarship, and the majority of MMed graduates received International Travel Grants to attend the Annual Scientific Meeting. PIP has been a highly successful partnership in delivering and building specialist medical services. Although AusAid contributed some $20 million over 16 years, the value added from pro bono contributions by Specialist Teams, Specialty Coordinators and the Project Directors amounted to an equivalent amount. With the emergence of Pacific Island-trained specialists, PIP is ready to move into a new phase where the agendas are set, monitored and managed within the Pacific, and RACS fulfils the role of a service provider. A critical mass of Pacific Island surgeons has been trained, so that sub-specialization will be an option for the general surgeons of the larger island nations.

Separate and invisible : a carceral history of Australian islands

This article examines the history of four islands used for incarceration in Australia: the ‘secondary punishment’ of convicts on Norfolk Island; the management and quarantine of indigenous people on Palm Island; the quarantine of all new migrants and visitors on Bruny Island; and the incarceration of enemy aliens on Rottnest Island. Incarceration has been used throughout Australia’s history as a method of social and political control, targeting categories of people perceived to pose a threat to the racial composition, social cohesion, or national security of the Australian community. By providing a space both separate and invisible to the community, Australia’s carceral islands served as a solution to a recurring problem for a young nation apprehensive about the composition, durability and security of its community. The human consequences of incarceration could be devastating.

Climate as a driver of population variability in breeding Gentoo Penguins (Pygoscelis papua) at the Falkland Islands

Detecting and predicting how populations respond to environmental variability are eminent challenges in conservation research and management. This is particularly true for wildlife populations at high latitudes, many of which demonstrate changes in popula

Subfossils of extinct and extant species of Simuliidae (Diptera) from Austral and Cook Islands (Polynesia): anthropogenic extirpation of an aquatic insect?

Subfossil head capsules of Simuliidae larvae have been recovered from swamps on Tubuai and Raivavae of the Austral Islands, and Atiu and Mangaia of the southern Cook Islands. For Tubuai and Raivavae it is likely that the simuliids are extinct, but a single simuliid species is extant on nearby Rurutu. For Atiu and Mangaia, extant simuliids have not been reported, but are known on Rarotonga. Well-preserved head capsules indicate that the Cook Islands subfossils are those of Simulium (Inseliellum) teruamanga Craig and Craig, 1986. For the Austral Islands, the simuliid from Tubuai is considered a variant of Simulium (Inseliellum) rurutuense Craig and Joy, 2000. That from Raivavae is morphologically distinct and is described here as a new species, Simulium (Inseliellum) raivavaense Craig and Porch. Humans arrived in Eastern Polynesia ca. 1,000 years ago resulting in the widespread destruction of lowland forest and conversion of wetlands to agriculture with implied consequences for the indigenous biota of these habitats. Here we consider that one such result was loss of freshwater aquatic biodiversity.