DOI: 10.36347/sjebm.2017.v04i07.004

Pages: 420-424

The South Pacific region has been lagging behind in growth in comparison to similarly placed island countries globally. This paper undertakes a descriptive study on the contributing crucial determinants of foreign direct investment (FDI) inflows into Fiji using secondary data in making critical data analysis. Fiji has the distinction of being a leading country in the region with skilled labor. After the impact of the various political instability, the Fijian economy seemed to be have made a sustained recovery ever since. However, the recovery was not as great as forecasted by the Reserve Bank of Fiji. A stable political climate is important for Fiji’s future economic performance and sustained economic growth in the long run with macroeconomic stability coupled with enhanced business environment with governments continued structural reforms and economic policy, with emphasis on exports. The findings strongly suggest that Foreign Direct Investment is growth enhancing in Fiji yet the impact of FDI depends on the threshold levels of absorptive capacities measured by the levels of human capital, infrastructure, and technology. In order to effectively sustain a robust economy, the government needs to have a clear understanding of the roles and responsibilities of all stakeholders in the community.