Fiji’s Intraregional Trade Outcomes

Trade in the Pacific Island Countries (PICs) is characterized by heavy dependence on imports and a narrow base of exports (Pacific Island Forum Secretariat, 2020). According to the Standard Trade Model, the differences in the factor inputs is the driver of production possibility frontiers and trade outcomes. Similarly, in the context of the PICs, geographical isolation, and lack of resource and factor inputs inhibits the export potential of the PICs. The level of intra-regional trade is quite limited amongst the PICs, and it is expected to grow in the future. With the establishment of the Pacific Islands Forum (PIF), it is evident that the intra-regional trade is likely to expand in the future (Pacific Island Forum Secretariat, 2020). The main aim of this paper is to examine and discuss Fiji's trade of merchandise and services over the last ten years.