Long-term private sector investment inflows and their impact on Barbadian exports and imports from 1970-1997

Long-term private sector investment inflows have played an important role in the development of Barbados for many years. First of all, they have a direct impact on the country’s capital and financial account, and by extension, the foreign reserves which are the lifeblood of the Barbadian economy, and indeed, many economies around the globe. Secondly, because private sector activity is linked to those sectors which earn as well as consume foreign exchange, any investment undertaken by this group should have implications for import and export performances. It is therefore against this background that a study of this nature is being carried out. Section two will look at trends in long-term private sector investment inflows over the last twenty- eight years. This will be followed in the next section by some observations on exports and imports over the said period. Section four seeks to examine the impact of long-term private sector investment inflows on Barbadian exports and imports in the long and short run with the use of regression analysis. This will be followed bay a conclusion.