Sectoral labour productivity and economic competitiveness in New Caledonia

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Date

2018

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MESR

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Copyright PERSEE 2003-2024. Works reproduced on the PERSEE website are protected by the general rules of the Code of Intellectual Property. For strictly private, scientific or teaching purposes excluding all commercial use, reproduction and communication to the public of this document is permitted on condition that its origin and copyright are clearly mentionned.


Résumé En

A small island economy, New Caledonia stands out amidst other French overseas territories, and even more so the islands of Oceania, for its high standard of living and human development. However, it also suffers from the disadvantages common to small island economies (remoteness, small market size, etc.). The slowdown in growth observed over the last few years reveals how the New Caledonian model of “ extensive” growth is losing pace overall : producing more from more of inputs to satisfy the domestic demand, protecting itself from international competition in the process, and drawing largely on nickel mining. This article aims to assess the competitiveness of New Caledonia''s economy. It puts forward labour productivity indicators for the main market sectors of the New Caledonian economy from 1992 to 2014 to derive changes in unit costs and finally in real exchange rates. It shows that labour productivity has tended to stagnate since the early 2000s, while at the same time increases in minimum wage contribute to an increase in unit costs and a decline in competitiveness.

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