Theoretical Economics Letters, 2013, 3, 1-8
http://dx.doi.org/10.4236/tel.2013.35A3001 Published Online October 2013 (http://www.scirp.org/journal/tel)
Economics of Households in Pacific Island Countries:
A Case Study of Vanuatu and Tuvalu
Ranjila Devi Singh, Sarah L. Hemstock
Pacific Centre for Environment and Sustainable Development, University of the South Pacific, Suva, Fiji
Received July 29, 2013; revised August 29, 2013; accepted September 10, 2013
Copyright © 2013 Ranjila Devi Singh, Sarah L. Hemstock. This is an open access article distributed under the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is
properly cited.
ABSTRACT
The source of livelihood varies amongst the Pacific Island Countries and also within a country; between urban and rural
areas. Most Pacific Island Countries (PICs) and their households rely on subsistence activities and agriculture for their
livelihood. This research was based on surveys conducted in Piliura and Tassiriki villages in Vanuatu and Vaiaku, Se-
nala and Tumaseu villages in Tuvalu, which involved developing a methodology for household surveys to elucidate
issues linked to liveliho od. The analysis revealed th at the major sour ce of household inco me in Vanuatu stud y sites was
from the sale of products, while in Funafuti (Tuvalu) households earned the majority of their income from
wages/salaries. However, in Tumaseu village (Tuvalu) the households generated their source of income from both
wages and sale of products. In all the study sites, food was the major household expense. This study was aimed at al-
lowing researcher s and decision makers a better understanding of th e economic realities for households in PICs.
Keywords: PICs; Households; Livelihood
1. Introduction
Much existing literature indicates that the people of the
Pacific Island Countries (PICs) rely on subsistence ac-
tivities and agriculture for their livelihood, with remit-
tances contributing significantly to income. This study
aims to give researchers and decision makers a better
understanding of the economic realities of household
income and expenditure in PICs.
2. Study Sites
Five sites took part in the study, two in Vanuatu and
three in Tuvalu. These two Pacific Island Countries were
selected as they varied geographically, economically and
socially, so it should provide a broad basis on which to
gain in depth knowledge on household economics.
2.1. Vanuatu
Vanuatu has 80 islands with the total land area 12,190
km2 and lies between 13 - 21 degrees south and 166 -
171 degrees east [1]. Of the 80 islands in Vanuatu, 65 are
inhabited and its exclusive economic zone is 700,000
km2 [2]. Port Vila is the capital of Vanuatu located on the
Efate Island and the largest island in Vanuatu is Espiritu
Santo [3]. The main islands are linked by air and the re-
mote ones by boat. The pop ulation of Vanu atu is 234,023
and 76 percen t of the population live in rural areas [2,4].
The majority (98.7 percent) of the population is of
ni-vanuatu ethnicity and the reminder 1.3 percent are of
part ni-vanuatu, other Melanesian, Polynesian, Microne-
sian, European and Chinese [3]. The major economic
activities in Vanuatu are agriculture, forestry and fishing
and tourism sector is also increasing [1,5]. Copra, kava,
cocoa, coffee, taro, yams, fruits and vegetables, beef and
fish are the main agricultural products [1,6]. Food and
fish freezing, wood processing and meat canning are the
industries present in Vanuatu [6]. The two communities
from Vanuatu are Piliura and Tassiriki village. Piliura
village is in Pele Island which is located seven kilometres
off the north coast of Vanuatu’s main island, Efate. Pele
Island falls under the Shefa province and has four vil-
lages namely Laonamoa, Piliura, Worearu and Worasifiu
with 62 households and 330 people [4]. There are 22
households and 136 people living in Piliura village. The
locals depend on subsistence activities such as fishing,
agriculture, eco-tourism and selling handicrafts. The
children from Piliura v illage attend primary school on the
island. For further education, the students have to travel
to Port Vila. Rainwater is the main source of drinking
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opyright © 2013 SciRes. TEL

R. D. SINGH, S. L. HEMSTOCK 2
water which is collected in village tanks, household tanks
and plastic buckets and containers. Tassiriki village is
located in Moso Island which is close to Efate Island. It
also belongs to Shefa province. The island is covered
with extensive areas of mangroves. There are two vil-
lages on Moso Island namely Tassiriki (Sunae) and
Sounai. Tassiriki village has 35 househo lds and 297 peo-
ple reside in the village. The locals earn their living by
farming activities, selling charcoal, selling fish, handi-
crafts and some tourism activities. Charcoal and vegeta-
bles are sold at the Port Vila market. The village has a
primary school but for further education the students
travel to Port Vila. The mode of transport from Moso
Island to Efate Island is by boat. Drinking water is col-
lected in concrete tanks which are often shared between
few households and some have their own water tanks.
Plastic buckets and containers also supplement collection
of rainwater. Groundwater is used for bathing and wash-
ing.
2.2. Tuvalu
The island of Tuvalu lies in the Western South Pacific,
its coordinates are 176 - 180 degrees east and 5 -
11degerees south [1]. The total land area is 26 km2 with
five true atolls and four raised limestone reef islands [7];
[1]. Tuvalu’s exclusive economic zone (EEZ) extends to
900,000 km2 and has great fish stocks [8]. The main is-
land of Tuvalu is Funafuti and the capital is Fongafale
[9]. The population of Tuvalu was estimated to be 11,206
in 2011 [10]. English, Tuvaluan and Kiribati are the three
main languages [9]. All the islands have primary school
but for secondary school the students travel to Vaitupu
Island. For further education the students travel to other
Pacific island countries or to Funafuti which has a Uni-
versity of the South Pacific Campus, commercial school
– Maleta Kapane Halo Computer and Typing School and
Tuvalu Maritime Training Institute [11 ]. The economy of
Tuvalu heavily relies on imported food and fuel [9]. Sub-
sistence agriculture and fisheries are major activities for
the Tuvaluans; tourism, EEZ fishing licence fees and
remittances from Tuvaluans employed abroad, mainly as
seafarers, is also a source of income [9]. The three com-
munities from Tuvalu were Vaiaku and Senala village
from Funafuti Island and Tumaseu village from Vaitupu
Island. Vaiaku village has 72 households and th e popula-
tion of Vaiaku village is 485 [11]. There are 142 house-
holds in Senala village and the village has a population
of 909 [11]. People migrate from outer islands to Funa-
futi for further education, better medical facilities and
employment opportunities [11]. Motorbikes, cars, trucks
and bicycles are the main modes of transportation on the
islands [11]. The main sources of in come in Funafuti are
employment, remittances and subs istence fishing, cutting
toddy, handicrafts, farming and livestock (pig and chi-
cken) rearing [11]. Agriculture in Funafuti is limited as
there are high numbers of houses and lack of land, the
land available is used for Pulaka (Cyrtosperma chamis-
sonis) cultivation and home gardening is common [11].
Tumaseu village has 53 households and a total popula-
tion of 217 people [12]. The only public secondary
school run by government is Motufoua Secondary School
which is located on the island of Vaitupu and is a board-
ing school where students from other islands come to
complete secondary school [12]. The main health facility
on the island that is the clin ic which is located in Saniu ta
village and accessible to all eight villages and Motufoua
health clinic which is close to Motufoua Secondary
School is for school students and the teachers only.
However, there are no doctors in Vaitupu hence serious
cases need to be referred to Funafuti [12]. Vaitupu peo-
ple are mostly self-employed such as operating canteens
and small shops, fishing, gambling (known as bingo),
and a few owning night clubs, motorbike hiring, loan
scheme business and barber shop [12]. The sources of
cash income are from land leases, remittances and pen-
sion, while, subsistence living is from feeding pigs, agri-
cultural activities and toddy cutting [12]. Women in
Vaitupu play a major role, they have formed organization
known as “Fafine Vaitupu Aoao” which means women
from the age of 18 - 69 years [12]. They are involved in
subsistence activities such as handicraft making and
selling (fans, mats, local brooms, coconut oil), feeding
livestock and farming, some are also employed and
self-employed [12] .
3. Methodology
This study was a non-experimental design involving
household surveys. A survey was undertaken to gain
in-depth knowledge on economic characteristic of the
households. The respondents were questioned on their
education level, annual household income, main source
of household income and who managed the household
income. Major household expenses were also reveled by
the survey. The household survey was given to the
household with the explanation of the questions and the
purpose of the survey in local language. It was ensured
that an equal number of surveys were given to males and
females of the community to eliminate gender bias. Ta-
ble 1 illustrates the number of surveys obtained from
each site and the number completed by male and female
respondents.
The household surveys were translated in both Bis-
lama and Tuvaluan languages. A total of 137 household
surveys were carried out for this research. For the Vanu-
atu sites that is Piliura and Tassirik i villages a total of 38
household surveys were completed in July 2012. In Pili-
ura village a total of 18 household surveys were carried
out. The number of households present in Piliura village

R. D. SINGH, S. L. HEMSTOCK 3
Table 1. The number of surveys obtained from each site and the percentage completed by male and female respondents.
Study Site Number of Surveys Obtained Number Male Number Female
Vanuatu Sites (Piliura and Tassiriki) 38 21 17
Tuvalu Sites (Vaia k u , Senala and Tumaseu) 99 45 54
is 22 household’s as a result only 18 household surveys
were obtained. In Tassiriki village 20 household surveys
were done and the total number of household present in
Tassiriki village was 35 households. For the Tuvalu
study sites: Vaiaku, Senala and Tumaseu villages a total
of 99 household surveys were obtained. The household
surveys from Vaiaku, Senala and Tumaseu were 36, 42
and 21 respectively. The research in Tuvalu was com-
pleted in November 2012.
55.3 percent were male and 44.7 percent were female.
The survey participant’s year of birth ranged from 1938
to 1993 so participant ages ranged from 19 to 74 years.
The number of adults in the households ranged from
two to 12 people, with an average of four adults per
household. While the number of children per household
ranged from one to eight children, the average was two
children per household. The interviewee’s period of
residence in their respective villages ranged from four
years to 67 years, the average being 23 years. Figure 1
shows the education level of the respondents in Vanuatu
study sites.
Analysis of the household survey was done in Statisti-
cal Package for the Social Sciences (SPSS, version 16.0).
It has a set of software tools that allows for data entry,
data management, statistical analysis and presentation.
Once all close ended questions were coded, inputted and
analysed, frequency distributions and means were gener-
ated and comparisons of means were prepared to identify
statistical relationships between the variables such as
source of income and major household expense.
The levels of education for the samples surveyed in
Piliura and Tassiriki villages show that majority of the
respondents, 56.8 percent, have attained education till
primary school. While 37.8 percent of the respondents
went to secondary school and 5.4 percent have not re-
ceived any schooling. Pele and Moso Island have a pri-
mary school, children from Piliura and Tassiriki travel by
boat to Port Villa to attend higher schools. Once children
have completed primary school the majorities leave edu-
cation to help with income generating activities such as
farming and fishing. Some of the locals have not at-
tended schools this can be due to transportation and fi-
nancial difficulties faced by those living in remote vil-
lages such as Piliura and Tassiriki.
An inferential analysis-analysis of variance using a
non-parametric hypothesis test (Mann-Whitney test) was
conducted to test if there was any significant difference
among the two locations (Piliura and Tassiriki village)
for the variables surveyed. The null hypo thesis was set to
be that statistically there is no significant difference be-
tween Piliura and Tassiriki village. While the alternative
hypothesis was set to be that statistically there is signifi-
cant difference between the two locations. From the p
value of Mann-Whitney test it can be fou nd ou t if th ere is
any statistically significant difference or no. If the p
[Asymp. Sig. (2-tailed)] value is less than 0.05 the null
hypothesis will be rejected and alternative hypothesis
will be accepted and vice versa at five percent significant
level. Similar, hypothesis test was done for the two is-
lands in Tuvalu: Funafuti Island (Vaiaku and Senala vil-
lage) and Vaitupu Island (Tumaseu village).
Of the participants 14.8 percent had less than US$ 221
(20000 Vatu) as their annual household income, 11.1
percent between US$ 232 to US$ 442 (21,000 Vatu to
40,000 Vatu), 11.1 p ercent between US$ 453 to US$ 664
(41,000 Vatu to 60,000 Vatu) and 62 .9 percent had above
US$ 675 (61,000 Vatu). The average household income
was US$11,781 (106,0351 Vatu). Figure 2 highlights the
main source of household income for Piliura village.
Therefore, the data for Piliura an d Tassiriki village are
analysed together as statistically no significant differ-
ences existed between the two locations except for main
source of household income. Similarly, the data for
Funafuti Island (Vaiaku and Senala village) and Vaitupu
Island (Tumaseu village) are analysed together since
there was no statistically significant difference between
the two locations except for annual household income
and source of income.
The main source of household income in Piliura vil-
lage was generated through sales of products (62.4 per-
4. Findings
4.1. Vanuatu Figure 1. Educational levels of respondents from Piliura
and Tassiriki villages, Vanuatu in year 2012 (n = 38).
Of the 38 survey respondents in Piliura and Tassiriki,

R. D. SINGH, S. L. HEMSTOCK 4
cent). Pele Island is a tourist site; Piliura locals sell
handicrafts and sea shells to the tourists on the island.
Handicrafts such as fans are weaved out of coconut and
pandanus leaves, and necklaces made from coconut
shells. Women were engaged in handicraft making and
selling. People of Piliura village grow crops and vegeta-
bles and engage in fishing, these products are sold in Port
Vila market to earn a living. Of the survey respondents
25 percent earned a living from wages and salary. The
locals were employed as tour guides to the tourists and
some of the locals travelled to Port Villa for employment.
While 12.5 percent generated income from own business
such as such as boat services and guest house rents to
tourists and researchers. Figure 3 shows the main source
of household income for Tassiriki village.
The majority of households (94.4 percent) generate
income from sales of products such as fish, crops, fire-
wood and charcoal Firewood and charcoal were the ma-
jor products sold by Tassiriki locals. One bag of charcoal
is sold for US$11 (1000 Vatu). However, there are ex-
penses involved in charcoal production and marketing
such as buying of charcoal bags, transportation cost to
market and market table fee. The household income for
the households surveyed is managed by males, females,
bo th ma le s an d f ema les an d fa mi lie s. Figure 4 highlights
the management of household income.
Males manage the household income for the majority
of the households surveyed (64.5 percent). Therefore in
Piliura and Tassiriki villages there is gender division in
household income management. Decision making for use
25%
12.5%62.4%
Wag es/salary
Ownbusiness
Saleofproducts
Figure 2. Main source of household income for Piliura,
Vanuatu in year 2012 (n = 18).
Figure 3. Main source of household income for Tassiriki,
Vanuatu in year 2012 (n = 20).
of household income in rural areas is mostly done by
males this strongly agrees with [13]. Only in 19.4 percent
of the households surveyed the household income is
managed by females, in 12.9 percent by both males and
females, and in 3.2 percent by the whole family. Food
and education were found to be the major household ex-
pense for Piliura and Tassiriki locals. Figure 5 below
displays major household expenses.
Food was the major household expense (62.2 percent),
followed by education (29.7 percent), health care (5.4
percent) and transp ort (2.7 percent).
4.2. Tuvalu
Of the 99 survey respondents in Tuvalu, 45.5 percent
were males and 54.5 percent were females. The survey
participant’s year of birth ranged from 1938 to 1993 so
participants ages ranged from 19 to 74 years. The num-
ber of adults in the households surveyed ranged from two
to 18 people with an average of six adults. While the
number of children per household ranged from none to
ten with an average of three children. The interviewee’s
period of residence in their respective villages ranged
from one year to 74 years, the average being 24 years.
Figure 6 below shows the level of education for the sur-
vey participants.
Majority of the respondents (52.2 percent) have com-
pleted their education till secondary school in Motufoua
Secondary School which is a public school operated by
government (located on Vaitupu Island) and Fetuvalu
Figure 4. Management of household income in Piliura and
Tassiriki villages, Vanuatu in year 2012 (n = 38).
Figure 5. Major household expenses in Piliura and Tassiriki
villages, Vanuatu in year 2012 (n = 38).

R. D. SINGH, S. L. HEMSTOCK 5
Secondary School operated by Kalesia Kelisiano Tuvalu
(See [11]). The students from other islands travel to Vai-
tupu Island to complete their second ary schoo l educatio n.
Primary school has been completed by 32.6 percent of
the population. Only 1.1 percent of the surveyed popula-
tion did not attain any formal education. Primary school
education is offered for free in Tuvalu. Amongst the sur-
veyed 13 percent have attained education till diploma
level and 1.1 percent has attained a master’s degree. Ter-
tiary education in Tuvalu is offered by Maleta Kapane
Halo Computer and Typing School, University of the
South Pacific Tuvalu Campus and Tuvalu Maritime
Training Institute (See [11]). Students from Tuvalu also
travel to other Pacific Island Countries to attain further
education especially Fiji Islands. Figure 7 shows the
annual household income for Vaiaku and Senala v illages,
Funafuti Island.
In Vaiaku and Senala villages, 21.6 percent of the re-
spondents had less than US$1025 (AUD$ 1000) as their
annual household income, 28.4 percent had annual
household income between US$ 1026 to US$ 5127
(AUD$ 1001 to AUD$ 5000), 23.8 percent had between
Figure 6. Educational levels of respondents from Vaiaku,
Senala and Tumaseu villages, Tuvalu in year 2012 (n = 99).
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Percentage (%)
Annual h ousehold in come
Figure 7. Annual household income for Vaiaku and Senala
village, Funafuti Island, Tuvalu in year 2012 (n = 78).
US$ 5128 to US$ 10255 (AUD$ 5001 to AUD$ 10,000),
21.8 percent had between US$ 10,256 to US$ 20,510
(AUD$ 10,001 to AUD$ 20,000) and the remaining
seven percent had their annual household income above
US$ 20,510 (AUD$ 20,001). The highest annual house-
hold income amongst the respondents was US$ 30,765
(AUD$ 30,000), lowest income was US$ 300 (AUD$
293) and the average household income for the respon-
dents was US$ 7533 (AUD$ 7,357). Figure 8 highlights
the main source of household income of Vaiaku and Se-
nala villages, Funafuti Island.
Figure 9 shows the annual household income for Tu-
maseu village, Vaitupu Island.
In Tumaseu village, Vaitupu Island, 50 percent of the
survey responden ts had less than U S$1025 (AUD$ 1 000)
as their annual household income. While 37.5 percent
had annual household income between US$ 1026 to US$
5127 (AUD$ 1001 to AUD$ 5000) and 12.5 percent had
between US$ 10,256 to US$ 20,510 (AUD$ 10,001 to
AUD$ 20,000). The highest annual household income
amongst the resp ondents was US$ 2 0,500 (AU D$ 20,0 00)
lowest income was US$512 (AUD $500) and th e av era ge
household income for the respondents was US$ 4589
2.7%
78.1%
2.7%
9.6% 5.5% 1.4%
No i ncome
Wages/Salary
Own business
Sal e of products
Land lease
Remitt an ces
Figure 8. Main source of household income of Vaiaku and
Senala villages Funafuti Island in year 2012 (n = 78).
0%
10%
20%
30%
40%
50%
60%
lessthan
US$1025
US$1026to
US$5127
US$10256to
US$20510
Pe rcentage(% )
Annualhou seholldincome
Figure 9. Annual household income for Tumaseu village,
Vaitupu Island, Tuvalu in year 2012 (n = 21).

R. D. SINGH, S. L. HEMSTOCK 6
(AUD$ 4,477). Figure 10 displays the main source of
household income of Tumaseu village Vaitupu Island.
Of the households su rveyed 50 percent earned a living
from employment. The locals were employed as seafear-
ers, plant and machine operators, teachers, nurses, sales
person, caretakers, agriculture officers, fisheries observ-
ers and other administrative positions in Island Kaupule
and Government (see [12]). Whereas 33.3 percent earned
a living from sale of products such as fish, coconut and
handicrafts, 11.1 percent generated income from land
lease and 5.6 percent earned living from own business
such as shops (groceries shop, motor bike hire and repair,
handicrafts, carpentry and commercial fishing business.
Figure 11 displays the management of household in-
come.
In 44.7 percent of the households surveyed the house-
hold income was managed by females, in 29.4 percent by
males and in 12.9 percent by both males and females.
Females dominated the management of household in-
come in Tuvalu. In 8.2 percent of the households the
whole family managed the household income. While in
2.4 percent of the households only elders managed the
household income, in 1.2 percent of the households’
children managed the household income and again in 1.2
percent of households cousins were responsible for
management of household income. According to [11], in
Vaiaku 56 households are headed by males and 17
households by females and in Senala 101 households are
headed by male and 41 households by females [12] in-
50%
5.6%
33.3%
11.1% Wages/salary
Ow nbusiness
Salesofproducts
Landlease
Figure 10. Source of income for Tumaseu village, Vaitupu
Island Tuvalu in year 2012 (n = 21).
1.2%1.2%2.4%8.2%
44.7%
29.4%
12.9%
Child ren
Cousin
Elders
Family
Fema le
Male
BothMaleandFemale
Figure 11. Management of household income in Vaiaku,
Senala and Tumaseu villages, Tuvalu in year 2012 (n = 99).
dicate that in Tumaseu village 43 households are headed
by males and 10 households by females. Even though
most of the households were headed by males in majority
of the households’ females managed the household in-
come. Figure 12 below displays major household ex-
penses.
The major household expense in Vaiaku, Senala and
Tumaseu village was food as shown by 88.6 percent of
the survey respondents, followed by energy (5.7 percent),
education (2.3 percent), healthcare (2.3 percent) and wa-
ter (1.1 percent). In Tuvalu most of the food items are
imported from other countries and are expensive hence
buying food items contributes to most of the household
expenses. The households have to pay for electricity and
purchase fuel for cooking. Primary school education is
free in Tuvalu; however, for further education money is
required. For Vaiaku and Senala villages the children
have to travel to Vaitupu Island for secondary school
education which has travel expenses, boarding costs,
school fees and book costs. In times of drought some
households have to purchase water.
5. Discussion
From the results it can be noted the respondents from
Tuvalu study sites have attained more education than
those from Vanuatu study sites. The level of education in
Tuvalu sites was from no school to master’s level while
at Vanuatu sites it was from no school to secondary
schools (see Sections 4.1 and 4. 2).
The average household income for Vanuatu sites was
US$ 11,781 (1060351 Vatu). For the Funafuti study sites
the average household income for the respondents was
US$ 7533 (AUD$ 7357) and for Tumaseu village the
average household income for the respondents was US$
4589 (AUD$ 4477) . The sources of household in come in
Vanuatu study sites was mainly from sales of products,
followed by own business and wages salary (only in Pil-
iura village) (see Section 4.1). While the major source of
household income in Tuvalu sites was from wages/salary.
In Funafuti, sales of products were the major source of
household income for 9.6 percent of the household
88.6%
1.1%
5.7%
2.3% 2.3%Food
Water
Energy
Healthcare
E duca tion
Figure 12. Major household expense s in Vaiaku, Senala and
umaseu villages, Tuvalu in year 2012 (n = 99). T

R. D. SINGH, S. L. HEMSTOCK 7
Table 2. Chi-square p values for the variables tested.
Variable tested Pearson Chi-square p value-VanuatuPearson Chi-square p value-Tuvalu
Source of income and househ o l d e xpenses 0.332 0.000
Education level and source of income 0.405 0.583
Education level and management of household income 0.596 0.980
surveyed while in Tumaseu village 33.3 percent of the
households earned a living from sales of products. Other
sources of income were from own business, remittances
and land lease.
The management of household income in Vanuatu
sites was largely by males while at Tuvalu study sites
mainly females managed the household income. The
major household expenses in Vanuatu study sites were
food (62.2 percent), education, health and transport. In
Tuvalu, food (88.6 percent) was also the major house-
hold expense followed by energy, health, education and
water. As discussed in Section 4.2 in Tuvalu, most of the
food items are imported from other countries and are
expensive hence buying food ite ms contribute to most of
the household expenses.
Moreover, a Pearson Chi-square test for independence
was conducted to find out if there is any statistically sig-
nificant association between some of the categorical
variables of the research. The null hypothesis was set to
be that statistically there is no significant association
between the two variables. While the alternative hy-
pothesis was set to be that statistically there is sign ificant
association between the two variables. From the p value
of Pearson Chi-square test it can be found out if there is
any statistically significant association or no. If the p
[Asymp. Sig. (2-tailed)] value is less than 0.05 the null
hypothesis will be rejected and alternative hypothesis
will be accepted and vice versa at five percent significant
level. Table 2 shows the variables tested and the chi-
square p values.
The Pearson Chi-square p value of, “source of in-
come” and “household expenses”; “education level” and
“source of income”; “education level” and “management
of household income”; “management of household in-
come” in Vanuatu were more than 0.05 and so there was
not sufficient evid ence to reject the nu ll hypo thesis hence
it was accepted. Therefore, statistically there is no sig-
nifi- cant association between the variables tested above.
While for Tuvalu the variables “source of income” and
“major household expenses” the Pearson Chi-square
value was 0.000 which is less than 0.05, therefore there is
sufficient evidence to reject the null hypothesis and ac-
cept the alternative hypotheses. That is statistically there
is significant association between the two variables. For
those who have no income, food is the major household
expense, for those who earn a living from wages and
salary most show major household expense as food,
some for energy as they have money to pay for electricity
so use electricity and some for healthcare. For those with
own business some showed food as major household
expense, some for health care and some education. For
the households that earn a living from sales of products
major expenses are food and education only. The house-
holds whose main source of income was from land lease,
food is the major household expenses and for few it is
energy. For the families who generated their income
from remittance water was major household expense.
The main association between the two variables was that
food remained the major household expense regardless of
source of income.
On the other hand, the Pearson Chi-square p value of
variables: “education level” and “source of income”;
“education level” and “management of household in-
come” in Tuvalu was more than 0.05 hence there was not
sufficient evidence to reject null hypothesis hence it was
accepted. Therefore, statistically there is no significant
association between the variables tested above.
6. Conclusion
In conclusion it can be noted that source of income dif-
fers between rural and urban areas in PICs. For instance,
the rural areas of Vanuatu, Piliura and Tassiriki village
generate their source of living from sales of products.
While in Funafuti (Tuvalu) which has urb a n facilities, the
major source of living is from wages/salary. Tumaseu
village (Vaitupu Island) has some urban facilities as
noted in Section 2, hence the villagers generate income
from sales of products and wages/salary. Major house-
hold expenses keep food items for all the study sites. In
Tuvalu, most of the food items are imported hence they
are very expensive to obtain. In Vanuatu study sites, the
household income is mainly managed by males. For Tu-
valu study sites, females manage the household income
mainly however a significant number of males also
manage the household income.
7. Acknowledgements
A sincere acknowledgement is extended to Dr. Karen
McNamara, Prof Elisabeth Holland, and Dr. Helene Jacot
Des Combes—Pacific Centre of Environment and Sus-
tainable Development, University of the South Pacific,
USP European Union Global Climate Change Alliance
Project (USP-EUGCCA) for funding this research; USP-

R. D. SINGH, S. L. HEMSTOCK 8
EU GCCA in Country Coordinators: Mr. William Aru-
dovo (Vanuatu) and Mrs. Teuleala Manuella Morris
(Tuvalu); Mrs. Kale Tuengeri Kaitu (Research Assistant
in Tuvalu); Dr. Roy Smith (Nottingham Trent U nive rsit y)
and communities in Vanuatu (Tassiriki village and Pili-
ura village) and Tuvalu (Vaiaku village, Senala village
and Tumaseu village).
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