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Dutch Disease ()

internal objectives (
) external
objectives ( - balance of payments equilibrium

) internal objectives external


objectives (exchange rate)

(depreciation of exchange rate)


(inflation)

(
)

(Overseas Development Aid)


exchange rate
volatility (appreciation of exchange rate)

Dutch

Disease

Dutch Disease

(North Sea)
()
The Economist The Dutch Disease

Booming

sector

() natural
resource sector
() ()
(.) (.)
share of profits () (.) ()
(.)

()


natural resource sector

uncompetitive
recession Dutch Disease Angola,
Nigeria, Sudan , Venezuela, Sierra Leone, Liberia Congo
Dutch Disease

Dutch Disease

(economic competition)

Dutch Disease Corden Neary


core model model
(natural resource sector)

(non-resource tradables sector)


(non-tradables sector)

natural resource sector non-resource tradables sector



non-tradables sector
non- tradables tradables
real exchange rate non- tradables
(appreciation of real exchange rate)

consumption

(lagging

sector)

Corden Neary core model Dutch Disease


natural resource sector capital
labour (booming sector)

sector

non-tradables

-
tradables sector

tradables

sector

(appreciation of real
exchange rate)
(resource-movement effect)

(spending effect)

natural resource sector non-

tradables non-tradables

non-resource

tradables


(middle

class)

Dutch Disease

Dutch Disease

macroeconomic polices (fiscal policy, monetary policy, structural policies)


() Fiscal Policy

fiscal policy main instrument

spending

effect

(smoothing of spending)
volatility

)
natural resource fund volatility
fund
(saving fund, stabilization fund, investment fund)

natural resource fund fiscal rules


medium-term expenditure framework

(transparency)
(corruption)

fiscal policy
(permanent

income

approach)

natural resource revenues


(sovereign wealth)

Collier
optimal fiscal rule

resource revenues

fiscal discipline

() Monetary Policy
Monetary policy supply of money

nominal exchange rate monetary policy

Taylor

interest

rate

rule

nominal exchange rate flexibility monetary policy

(stability)
(efficiency) bank failure

failure


independent central bank monetary policy

() Structural Policies
trade liberalization
non-tradables sector demand pressure

infrastructure


monopolistic
barriers (Foreign Direct Investment)
spillover effects conditions for learning by doing

Development
Economics, Financial Economics, Labour Economics, Health Economics, Environmental Economics,
Economic Growth
Government Economic Services, Institute of Public Policy

Macroeconomic

policies

( -
)

( )

Aberdeen

Brahmbhatt, M., O. Canuto and E. Vostroknutova (2010). Dealing with Dutch disease, Economic
Premise 16, World Bank, Washington, D.C.

Collier, P., F. van der Ploeg, M. Spence and A.J. Venables (2010). Managing resource revenues in
developing economies, IMF Staff Papers, 57, 1, 84-118

Corden, W.M. and J.P. Neary (1982). Booming sector and de-industrialisation in a small open economy,
Economic Journal, 92, 825-848.

Corden, W.M. (1984). Booming sector and Dutch Disease economics: Survey and consolidation, Oxford
Economic Papers, 36, 359-380.

Giavazzi, F., J. R. Sheen, and C. Wyplosz. (1988). The Real Exchange Rate and the Fiscal Aspects of a
Natural Resource Discovery. Oxford Economic Papers 40 (3): 42750.

Ismail, K. (2010). The Structural Manifestation of the Dutch Disease: The Case of Oil Exporting
Countries. Working Paper 10/103. International Monetary Fund, Washington, DC.

Morshed, A.K.M. and S.J. Turnovsky (2004). Sectoral adjustment costs and real exchange rate dynamics
in a two-sector dependent economy, Journal of International Economics, 62, 147-177.

Torvik, R. (2001). Learning by doing and the Dutch Disease, European Economic Review, 45, 285-306.

Williamson, J. 2008. Exchange Rate Economics. Working Paper 2. Commission on Growth and
Development, Washington, DC.