Abstract
Ph.D. (Economic)
Small developing economies, especially small island states, are more
vulnerable in the global economy. This is partly due to the fact that by virtue
of their size, trade comprises a larger proportion of their economic activities.
Despite facing similar economic vulnerabilities, Mauritius has transformed
from an impoverished mono-crop sugar island to Africa’s highest per capita
income economy.
The country is often hailed as an economic model as it has managed in spite
of its vulnerabilities to diversify its production activities and achieved rapid
and sustained economic growth over the past four decades. While
globalisation has stimulated the growth of international and domestic trade,
few African countries have managed to diversify domestic production and
exports and to effectively integrate with the global economy. It is in this
context that this study aims to investigate the trading activities and
transformation in this small African island economy in an essay format, of
four self-contained essays.
The first essay uses time series data and analysis for the period 1963 to 2013
to investigate if the trade openness led growth hypothesis holds true for
Mauritius. In order to investigate the relationship between trade openness
and economic growth, the measure of trade openness this study uses covers
various indicators ranging from, trade outcomes to trade policy. Overall, the
results suggest that although increasing trade openness has a positive and
significant influence on growth, the magnitude of the trade policy effects is
however negligible. Our results also highlight the growth-enhancing
contributions of imports and the value of an outward-oriented trade policy
regime. These results are robust for several model specifications.
The Special Economic Zones (SEZs) programme in Mauritius has contributed
to the country’s industrialisation and aided in its diversification from a
predominantly agricultural economy into manufacturing. The second essay...