Value of PNG Merchandise Exports: Is it Real Growth

Pulapa Subba Rao¹, Albert C. Mellam², Joyce Rayel³, Benedicta Gabonen-Mellam⁴, Peter Tulapi⁵ and Raymond John⁶

^1,2,3,4,5,6,The  School of Business Administration,  University of Papua New Guinea, P.O. Box : 320, University PO,  National Capital District, Papua New Guinea. Phone: +675-3267590, Fax : +675-3267144.

Corresponding author Email: pulapasubbarao@yahoo.com

Accepted 03 October 2012

Abstract

Papua New Guinea is endowed with mineral resources and rich in agriculture and forest resources. It exports primary products like gold, copper, crude oil, coffee, tea, rubber, cocoa, copra, palm oil, rubber and logs owning to dismal growth of manufacturing sector. The value of total merchandise exports increased from K 1390.5 million in 1991 to K15, 579.5 in 2010 recording an annual growth rate of 51.02% during 1991 to 2010. The value of total merchandise exports after eliminating the influence of price changes, declined from to K 2362.00 million in 1994 to K1738.40 million in 2010. The growth in the value of merchandise exports was almost due to significant increase in international prices of the products that the country exports. Hence it is suggested that the country should build manufacturing sector to get the advantage of exporting value-added products.