• Economics
  • Published 2014

The Distribution of Natural Resource Rents and the Dutch Disease

@inproceedings{Chisik2014TheDO,
  title={The Distribution of Natural Resource Rents and the Dutch Disease},
  author={Richard A. Chisik and Bill Battaile and Harun Onder},
  year={2014}
}
We show that the Dutch disease can arise solely because of the distribution of the natural resource rents. In particular, a less equal distribution of the natural resource rents can generate manufacturing sector stagnation and lower long-run growth even for a country with a smaller resource base and (initially) higher manufacturing productivity. In our framework the Dutch disease arises through a shift in demand. The new found wealth from the resource find increases demand for non-tradable… CONTINUE READING

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