author={Warner Max Corden},
THIS paper aims to consolidate a growing literature on booming sector economics and the Dutch Disease. The term Dutch Disease refers to the adverse effects on Dutch manufacturing of the natural gas discoveries of the nineteen sixties, essentially through the subsequent appreciation of the Dutch real exchange rate.' The paper is also intended to fill some theoretical gaps, notably in sections 5 (immigration), 6 (endogenous terms of trade effects), 7 (domestic absorption) and 10 (dynamics). The… 

The Dutch Disease in Australia: Policy Options for a Three-Speed Economy

This paper expounds the concept of Dutch Disease as it applies currently to Australia, noting the various gains and losses resulting from the Australian mining boom. “Dutch Disease�? refers to the

Dutch Disease in Australia: Policy Options for a Three‐Speed Economy

This paper expounds the concept of Dutch Disease as it applies currently to Australia, noting the various gains and losses resulting from the Australian mining boom. “Dutch Disease” refers to the

Oil price booms, Dutch disease and the crowding out of tradable sectors: new insight from bank lending behavior

The Dutch disease phenomenon is front and centre in explaining the poor economic performance of resource-rich economies. While it is well documented in the literature that resource discoveries or

Dutch Disease in Latin American countries: De-industrialization, how it happens, crisis, and the role of China

This study investigates if and how different episodes of large net inflows – export boom, remittances, FDIs, or aid – caused Dutch disease in Latin American countries. We investigate this disease –

An Empirical Analysis of Dutch Disease: Developing and Developed Countries

Dutch Disease occurs when a country discovers a substantial natural resource deposit and begins a large-scale exportation of it. As a result, the country's currency appreciates, thereby reducing the

The Exchange Rate, Dutch Disease and Manufacturing in South Africa: What do the Data Say?

The Dutch disease argument suggests that in commodity exporting countries "overvaluation" of the currency due to increases in commodity prices harms manufacturing even though the economy as a whole

Dutch Disease in Australia : A Structural VAR model with Multi-Sector †

The contribution of this paper is to provide a macro-econometric analysis of a mining boom and Dutch disease for a small open economy. In the early 2000s, Australia experienced a remarkable

Dutch Disease Effects in the Azerbaijan Economy: Results of Multivariate Linear Ordinary Least Squares (OLS) Estimations

  • I. Niftiyev
  • Economics
    Higher School of Economics Economic Journal
  • 2021
This paper investigates the increased role of extractive industry, particularly oil and gas, within the Dutch disease model between 2000-2018 in the Azerbaijan economy. Dutch disease phenomenon

Testing the Hypothesis of Dutch Disease in the Bolivian Economy

In recent years, Bolivia has experienced a strong inflow of foreign currency due in part to a sharp rise in prices of natural resources exports. This element along withthe real exchange rate



Oil, Disinflation, and Export Competitiveness: A Model of the "Dutch Disease"

This paper examines three possible sources of de-industrialization in an open economy: monetary disinflation, an increase in the international price of oil, and a domestic oil discovery. The analysis

The 'Dutch disease': a disease after all?

  • S.J.G. van Wijnbergen
  • Economics
  • 1984
Many third world oil producers are encountering serious problems in building up a diversified export base, while West European oil and gas producers (Netherlands, United Kingdom) are suffering a

Capital-importing oil exporters : adjustment issues and policy choices

The main unifying feature of the capital-importing oil exporters is the need to utilize petroleum export revenues--available over the next 10 to 20 years to representative members--to effect

Inflation, Employment, and the Dutch Disease in Oil-Exporting Countries: A Short-Run Disequilibrium Analysis

We explain nontraded goods and labor shortages in the Gulf countries, the decline of the traded goods sector in oil producers ("Dutch Disease"), and the absence of employment benefits of higher oil

Supply-Side Shocks: The Case of Australian Gold

A literature has developed recently to analyze the disruptive effects on small, open economies of a sudden change in the value of their natural resources. The paper looks to that literature to

Can an oil discovery lead to a recession

In a recent paper in this journal, Eastwood and Venables (EV) present an analysis of the macroeconomic consequence of an oil discovery in an open-economy model which assumes perfect international

Expanding Exports and the Structure of the Domestic Economy: A Monetary Analysis

This paper analyzes the dynamic adjustments of a small, open economy faced with the certain prospect of a future export (resources) boom. It is shown how the adjustment occurs in three phases. First,


This paper analyses the macroeconomic impact on an economy of the discovery of significant quantities of a natural resource. The resource will be termed 'oil' and the analysis is intended to be

Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"

It is well known that a domestic-response discovery gives rise to wealth effects that cause a squeeze of the tradeable-good sector of an open economy. The decline of the manufacturing sector