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Author: Warner Max Corden
Publisher:
ISBN: 9780868310794
Category : Business cycles
Languages : en
Pages : 37
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Book Description
Author: Warner Max Corden
Publisher:
ISBN: 9780868310794
Category : Business cycles
Languages : en
Pages : 37
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Book Description
Author: Roger Hosein
Publisher: Palgrave Macmillan
ISBN: 9783030776718
Category : Business & Economics
Languages : en
Pages : 265
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Book Description
Oil and Gas in Trinidad and Tobago presents a historical economic review of the energy sector of Trinidad and Tobago, followed by a detailed evaluation of policies associated with resource abundance and the effects on the economy from various perspectives, including industrialization, labor productivity, education, export diversification, and competitiveness. This book utilizes a wide range of statistical data and methodologies to both economically and statistically analyze these issues at hand. The content of this book will be useful not only for policymakers but also for researchers and students interested in the field.
Author: Kareem Ismail
Publisher: International Monetary Fund
ISBN: 145520062X
Category : Business & Economics
Languages : en
Pages : 38
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Book Description
This study derives structural implications of the Dutch disease in oil-exporting countries due to permanent oil price shocks from a typical model. We then test these implications in manufacturing sector data across a wide group of countries including oil-exporters covering 1977 to 2004. The results on oil-exporting countries are four folds. First, we find that permanent increases in oil price negatively impact output in manufacturing as consistent with the Dutch disease. Second, Evidence in the data shows that oil windfall shocks have a stronger impact on manufacturing sectors in countries with more open capital markets to foreign investment. Third, we find that the relative factor price of labor to capital, and capital intensity in manufacturing sectors appreciate as windfall increases. Fourth, we find that manufacturing sectors with higher capital intensity are less affected by windfall shocks than their peers, possibly due to a larger share of the effect being absorbed by more laborintensive tradable sectors. An implication of the fourth result is that having diverse manufacturing sectors in capital intensity helps cushion the volatility of oil shocks.
Author: Prince Emeka Ndimele
Publisher: Academic Press
ISBN: 0128096284
Category : Science
Languages : en
Pages : 487
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Book Description
The Political Ecology of Oil and Gas Activities in the Nigerian Aquatic Ecosystem reviews the current status of the ecosystems and economic implications of oil and gas development in Nigeria, a key oil-producing state. The ecological and economic impacts of oil and gas development, particularly in developing nations, are crucial topics for ecologists, natural resource professionals and pollution researchers to understand. This book takes an integrative approach to these problems through the lens of one of the key oil-producing nations, linking natural and human systems through the valuation of ecosystem services. Provides background information on Nigerian aquatic environments, its local history of oil exploration and a review of the physical chemistry of crude oil Reviews global and national perspectives on the oil and gas industry from a physical ecological, to a socio-political and economic ecological perspective Demonstrates real-life situations of the interactions and impacts of Nigerian petroleum production on the environment and local populations through case studies
Author: Owen Matthew Barder
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
It is sometimes claimed that an increase in aid might cause Dutch Disease - that is, an appreciation of the real exchange rate which can slow the growth of a country's exports - and that aid increases might thereby harm a country's long-term growth prospects. This essay argues that it is unlikely that a long-term, sustained and predictable increase in aid would, through the impact on the real exchange rate, do more harm than good, for three reasons. First, there is not necessarily an adverse impact on exports from Dutch Disease, and any impact on economic growth may be small. Second, aid spent in part on improving the supply side - investments in infrastructure, education, government institutions and health - result in productivity benefits for the whole economy, which can offset any loss of competitiveness from the Dutch Disease effect. Third, the welfare of a nation's citizens depends on their consumption and investment, not just output. Even on pessimistic assumptions, the additional consumption and investment which the aid finances is larger than any likely adverse impact on output. However, the macroeconomic effects of aid can cause substantial harm if the aid is not sustained until its benefits are realized. The costs of a temporary loss of competitiveness might well exceed the benefits of the short-term increase in aid. To avoid doing harm, aid should be sustained and predictable, and used in part to promote economic growth. This maximizes the chances that the long-term productivity and growth benefits will offset the adverse effects - which may be small if they exist at all - that big aid surges may pose as a result of Dutch Disease.
Author: Nienke Oomes
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages. We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms. We conclude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed.
Author: Lorenz Meyenburg
Publisher: Diplomarbeiten Agentur
ISBN: 3842805764
Category : Business & Economics
Languages : en
Pages : 172
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Book Description
Inhaltsangabe:Introduction: The term Dutch Disease (abbreviated to DD throughout the paper), introduced in 1977, refers to the adverse effects on Dutch manufacturing of the natural gas discoveries of the 1960s. The crucial sub-period from 1974 to 1979 after the oil price shock in 1973 / 1974 was then marked by a consumption driven booming government sector in the context of a European stagnation, and though this process in itself did not bear a disease character, the strong real appreciation due to an overvaluation of the Dutch Guilder and an inflexible labour market were at least the clearest possible signs of a disease. It is actually doubted that the DD is Dutch, but the existence of the DD as a general phenomenon is widely accepted in the literature. The fascination of the DD arises from its paradoxical nature that something intuitively good develops a dark side. There is a good side of every boom, its initial impact is beneficial and amounts to Pareto-improvement for the economy as a whole. This implies a rise in real living standards due to higher levels of public and private consumption and higher levels of investment (and savings). Windfalls, the linked fiscal revenues, and easier domestic and foreign borrowing can finance core public goods. Especially regarding developing countries, windfalls principally allow breaking out of the poverty trap: poverty lack of public finance lack of public goods lack of private investment poverty. Approaching the dark side, a favourable shock like a discovery of oil is a mixed blessing to developing countries, and research does not show a clear outperformance of the oil nations as a whole. The DD can be formulated as a provoking dilemma: Enjoy boom revenues to boost economic development while those revenues in fact turn out to be responsible for the economic stagnation through the deterioration of the tradeable sectors. The provoking nature of the DD runs the risk of being misused in the media in the longing for exciting economical statements, and a healthy mistrust should always accompany an alleged DD even in the literature, as the real problem can lie somewhere else in the dynamic economy. For example, in many countries, the downward trend in the share of manufacturing in national output is dominated by other reasons than a favourable shock. In general, policy choices can exacerbate or mitigate the DD, so that there is a direct connection, but the majority of influences rather works [...]
Author: Juan Yepez
Publisher: International Monetary Fund
ISBN: 1513589741
Category : Business & Economics
Languages : en
Pages : 32
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Book Description
Dutch disease is often referred as a situation in which large and sustained foreign currency inflows lead to a contraction of the tradable sector by giving rise to a real appreciation of the home currency. This paper documents that this syndrome has been witnessed by many emerging markets and developing economies (EMDEs) as a result of surges in capital inflows driven by accommodative U. S. monetary policy. In a sample of 25 EMDEs from 2000-17, U. S. monetary policy shocks coincided with episodes of currency appreciation and a contraction in tradable output in these economies. The paper also shows empirically that the use of capital flow measures (CFMs) has been a common policy response in several EMDEs to U.S. monetary policy shocks. Against this background, the paper presents a two sector small open economy augmented with a learning-by-doing (LBD) mechanism in the tradable sector to rationalize these empirical findings. A welfare analysis provides a rationale for the use of CFMs as a second-best policy when agents do not internalize the LBD externality of costly resource misallocation as a result of greater capital inflows. However, the adequate calibration of CFMs and the quantification of the LBD externality represent important implementation challenges.
Author: Achille Toto Same
Publisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 37
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Book Description
Abstract: Referring to the original context of Dutch Disease, the term refers to the fears of de-industrialization that gripped the Netherlands as a result of the appreciation of the Dutch currency that followed the discovery of natural gas deposits. Expansion of petroleum exports in the 1960s not only crowded out other exports, it actually reduced other exports disproportionately and fueled the fears of dire consequences for Dutch manufacturing. In the case of Equatorial Guinea, the secondary sector represents about 2 percent of the gross domestic product, manufacturing represents less than 1 percent, and oil represents more than 95 percent. The negative impact of the Dutch Disease in this context would be limited given the structure of the economy and on the contrary may even be a good thing because it fuels the structural transformational process of the economy, which is needed in Equatorial Guinea. This paper argues that the ongoing Dutch Disease is a natural and necessary reallocation of resources in the economy of Equatorial Guinea. The magnitude of negative macroeconomic consequences of the Dutch Disease depends on the country's economic structure and stage of development. In a country where the manufacturing sector barely exists or where the non-oil primary sector is structurally deficient, as has been the case of Equatorial Guinea, there is little to fear about the disease. The oil boom is a blessing, given that oil revenues when properly managed can play a special and critical role in overall economic development and poverty reduction in low-income countries. To promote good governance in the management of the country's oil wealth, the government may wish to adhere to clear standards of accountability and transparency; especially by complying with the Extractive Industries Transparency Initiative (EITI++).
Author: Julia Faltermeier
Publisher: International Monetary Fund
ISBN: 147558931X
Category : Business & Economics
Languages : en
Pages : 36
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Book Description
We study the optimal foreign exchange (FX) intervention policy in response to a positive terms of trade shock and associated Dutch disease episode in a small open economy model. We find that during a Dutch disease episode tradable production drops below the socially optimal level, resulting in lower welfare under learningby- doing (LBD) externalities. FX reserves accumulation improves welfare by preventing a large appreciation of the real exchange rate and by inducing an efficient reallocation between the tradable and non-tradable sectors. For an empirically plausible parametrization of LBD externalities, the model predicts that in response to a 10 percent increase in commodity prices FX reserves should increase by 1.5 percent of GDP. We also find that the welfare gains from optimally using FX reserves are twice as high as the gains from relying only on monetary policy. These results suggest that FX intervention is a beneficial policy to counteract the loss of competitiveness during a Dutch disease episode.
