Among the 14 Pacific island countries (PICs), Fiji, with its relatively better endowments in land and human resources as well as physical infrastructure, has been one of the ten favourite destinations of foreign direct investment (FDI) in Asia-Pacific. Past studies confirm that FDI contributed to economic growth of Fiji. Firstly, it added to domestic savings and reduced the resource gaps and cushioned them against possible adverse effects of current account deficits. Secondly, it enabled Fiji to step up its exportrelated activities by specifically focusing on resource development, employment creation and skills development. Soon after the two military coups of 1987, Fiji, which was isolated by bilateral donors in the region, was forced to explore and develop new areas of growth such as the export oriented garment industry with FDI from East Asia. The gains from FDI include not only creation of employment in those sectors, which attracted overseas investors, but also of additional employment opportunities in ancillary sectors, which are supportive to all production oriented activities in the economy.