| 1 Introduction | 9 |
| 2 Literature Review | 11 |
| 3 Data & Sample Characteristics | 16 |
| 3.1 Description of Variables | 17 |
| 4 Econometric Methodology: | 20 |
| 4.1 Model Specification | 20 |
| 5 Financing Pattern and Regression Results | 22 |
| 5.1 Financing in CARICOM | 22 |
| 5.2 Financing in the ECCU | 23 |
| 5.3 Regression Results | 24 |
| 6 Conclusion | 28 |
| 7 Policy Recommendations | 29 |
| 1.0 Introduction | 67 |
| 2.0 Stylised Facts | 69 |
| 2.1 Overview of Economic Growth within the ECCU | 69 |
| 2.2 Financial Sector | 71 |
| 2.2.1 Financial Innovation within the ECCU | 71 |
| 3.0 Literature Review | 74 |
| 3.1 Theoretical Review | 74 |
| 3.2 Empirical Review | 75 |
| 4.0 Data and Methodology | 77 |
| 4.1 Methodology | 77 |
| 4.2 Data | 78 |
| 5.0 Results and Analysis | 79 |
| 5.1 Estimation Results | 79 |
| 5.1 Granger Causality Tests | 82 |
| 6.0 Conclusion and Policy Recommendations | 82 |
| References | 84 |
| Abstract | 90 |
| 1.0 Introduction | 92 |
| 2.0 Literature Review and Theoretical Underpinnings | 94 |
| 2.1 FDI | 94 |
| 2.2 Trade Openness | 95 |
| 2.3 Openness and Growth | 97 |
| 3.0 Background and Stylized Facts | 98 |
| 3.1 Economic Performance | 99 |
| 3.2 Openness in the ECCU: FDI and Trade Openness | 102 |
| 3.2.1 FDI | 102 |
| 3.2.2 Trade openness | 103 |
| 4.0 Empirical Methodology | 105 |
| 4.1 Model | 105 |
| 4.2 Empirical methodology | 107 |
| 5.0 Empirical Results and Analysis | 110 |
| 5.1 Unit Root test | 110 |
| 5.2 Cointegration test | 111 |
| 5.3 Long-run Estimation with DOLS | 112 |
| 5.4 VECM results | 112 |
| 5.4 Granger Causality | 113 |
| 5.5 Structural Breaks | 114 |
| 6.0 Conclusion | 114 |
| 7.0 Recommendations | 115 |
| Appendix | 121 |
| 1 Introduction | 128 |
| 2. Exchange Rate Regimes in Latin America and the Caribbean | 129 |
| 3. Review of Literature | 130 |
| 4. Data and Methodology | 134 |
| 5. Empirical Results and Analysis | 141 |
| 5.1 Preliminary Tests | 141 |
| 5.2 System GMM and Model’s Specifications | 143 |
| 5.3 Empirical Results | 144 |
| 5.4 Discussion and Analyses of Results | 144 |
| 6. Concluding Remarks | 146 |
| References | 147 |
| APPENDIX | 150 |
| 1.0 Introduction | 162 |
| 2.0 Stylised Facts | 163 |
| 2.1 Natural Disaster Occurrences in the Caribbean | 163 |
| 2.2 Growth in the ECCU | 163 |
| 2.3 Vulnerabilities of the ECCU Countries | 164 |
| 2.4 Debt in the ECCU | 165 |
| 3.0 Literature Review | 166 |
| 4.0 Data and Methodology | 168 |
| 4.1 Data | 168 |
| 4.2 Model | 169 |
| 4.3 Methodology | 170 |
| 4.3.1 Panel Least Squares | 170 |
| 4.3.2 Debt Sustainability Analysis | 170 |
| 4.4 A Priori Expectations | 171 |
| 5.0 Results and Analysis | 172 |
| 5.1 Panel Least Squares Results | 172 |
| 5.2 Debt Sustainability Analysis Results | 174 |
| 5.2.1 Limitations | 176 |
| 5.2.2 Financing Needs | 176 |
| 6.0 Conclusion | 177 |
| 7.0 Policy Recommendations | 178 |
| References | 179 |
| Executive Summary | 189 |
| Context and Importance of the Problem | 190 |
| Current Challenges or Shortcomings | 196 |
| Policy Recommendations | 200 |
| Conclusion | 201 |
| References | 203 |
| Abstract | 205 |
| 1.0 Introduction | 207 |
| 2.0 Literature Review | 208 |
| 3.0 Data and Methodology | 211 |
| 3.1 Construction of Dataset | 212 |
| Table 1: Education Level of Labour Force, St Vincent and the Grenadines 1991-2012 | 214 |
| Figure 1: Average Years of Schooling, Labour Force and Population, SVG 1970-2012 | 216 |
| Table 2: Average Years of Schooling in Labour Force, Select Countries and Years | 217 |
| Figure 2: Quality Indices – Labour and Capital | 219 |
| 3.2 The Error Correction Model (ECM) | 220 |
| 3.3 Mincerian Human Capital Specification | 221 |
| 3.4 Solow Framework | 222 |
| 4.0 Results and Analysis | 223 |
| Table 3: Production Function, Average Years of Schooling General Specification with Select Dummy Variables and Quality-Adjusted Capital, 1970-2014 | 224 |
| Table 4: Production Function, Mincerian Human Capital Specification | 226 |
| Table 5: Decomposition of GDP Growth Adjusted for Quality of Inputs (in per cent) | 227 |
| Table 6: Decomposition of GDP Growth Disaggregated Education Level Adjusted for Quality of Capital, SVG 1970-2014 (in per cent) | 228 |
| 5.0 Conclusion and Policy Considerations | 229 |
| References | 230 |
| Table 3: Production Function, Average Years of Schooling General Specification with Select Dummy Variables and Quality-Adjusted Capital, 1970-2014 | 234 |
| 1.0 Introduction | 237 |
| 2.0 Literature Review | 239 |
| 3.0 Methodology | 242 |
| 4.0 Stylized Facts: Labour Force Participation and Unemployment | 242 |
| 4.1. Labour Force Participation | 242 |
| 4.2. Unemployment | 244 |
| 4.3. Characteristics of the Unemployed | 244 |
| 4.3.1 Gender | 244 |
| 4.3.2 Age | 245 |
| 4.3.3 Education | 246 |
| 4.4 Labour Market Demand | 246 |
| 4.4.1 Employment Demand by Sector | 246 |
| 4.4.2 Employment Demand by Educational Attainment | 248 |
| 4.4.3 Employment Demand by Employer Type | 248 |
| 4.5 The Major Issues in the Labour Market in Saint Lucia | 249 |
| 5.0 Government Intervention in the Labour Market | 249 |
| 6.0 Labour Market Prospects:What are the Viable Sectors for Job Creation? | 251 |
| 6.1. Tourism | 251 |
| 6.2. Agriculture | 252 |
| 6.3. Health | 253 |
| 6.4. Informatics and Information Technology | 255 |
| 6.5. Creative Industries | 255 |
| 7.0 Conclusion and Policy Recommendations | 257 |
| References | 260 |