Contributions of exports of services towards Fiji's output

This paper uses the Solow Model (1956) to explore quantitatively the nexus between the level of output and the export of services, focusing particularly on the Fijian economy. The introduction comprehensively outlines the World Trade Organizations (WTO) General Agreement on Trade in Services (GATS), which was included in the Uruguay Round of trade negotiations incorporating services into the multilateral trading system under the GATS in January 1995 thus establishing the rules and disciplines governing trade in services in a multilateral framework. This paper uses two-time series method viz., the LSE/Hendry general to specific (known as GETS) and Engle Granger two step (EG) approach to report the relationship between services export and GDP for the period 1975-2003. The statistical analysis show that service exports have a positive impact both in the short run and long run on the output level in Fiji