Dutch Disease

In economics, the Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agriculture). The presumed mechanism is that as revenues increase in the growing sector (or inflows of foreign aid), the given nation's currency becomes stronger (appreciates) compared to currencies of other nations (manifest in an exchange rate). This results in the nation's other exports becoming more expensive for other countries to buy, and imports becoming cheaper, making those sectors less competitive. While it most often …

Wikipedia

Publications

IMF: International Monetary Fund · 5 April 2024 English

Many countries have used energy subsidies to cushion the effects of high energy prices on households and firms. After documenting the transmission of oil supply shocks empirically in the United …

the latter in the medium run, reflecting the Dutch disease effect. On the other hand, more openness to


IMF: International Monetary Fund · 29 March 2024 English

Oil-exporting economies face the risk of an acceleration in the energy transition. A risk-based approach calls for urgent preparation for the post-oil era by diversifying exports and transforming the prevailing …

market failures are starker because of the Dutch disease, oil price volatility, and as we argue in this are especially acute, which are magnified by Dutch Disease effects, as incentives to develop non-oil tradable macroeconomic policies needed to avoid the Dutch disease while finding sources of financing when and


Brookings Institution · 28 March 2024 English

At a time when many countries, large and small, are confronting heavy and growing public debt burdens, Jamaica offers a rare example of a country that succeeded in substantially reducing …

mining created little employment, however, while Dutch Disease pressures led to declines in the relative importance


NBER: National Bureau of Economic Research · 21 March 2024 English

Economies routinely experience a variety of sector-specific supply and demand shifts. Yet, the distributional welfare consequences of these shifts are not well understood. We address this gap by developing an …

Nadine Yamout, and Francesco Zanetti. 2023. “Dutch Disease, Unemployment and Structural Change.” CAMA Working


World Bank Group · 8 March 2024 English

Developing countries are facing mounting pressures to incorporate environmental concerns into their policy reform agendas. This paper finds that common environmental policies, such as levying taxes to reduce the excessive …

Battaile, B. (2017). Does inequality drive the dutch disease? theory and evidence. Journal of International


NBER: National Bureau of Economic Research · 7 March 2024 English

Can participation in safety net programs have long-lasting negative effects across multiple generations? Prior work shows a 1993 Dutch disability insurance reform which tightened requirements and lowered benefits for participants …

some to satirically remark there must be a “Dutch disease.” The first generation compliers in our sample


NIESR: National Institute of Economic and Social Research · 5 March 2024 English

The objectives of The Commission are: to help understand and communicate the policy implications of new academic research related to UK productivity; to collect evidence from key stakeholders and provide …

UK’s de-industrialisation, partly through the ‘Dutch Disease’ mechanism. Despite those challenges and the


TPI: The Productivity Institute · 5 March 2024 English

The objectives of The Commission are: to help understand and communicate the policy implications of new academic research related to UK productivity; to collect evidence from key stakeholders and provide …

UK’s de-industrialisation, partly through the ‘Dutch Disease’ mechanism. Despite those challenges and the


PCNS: Policy Center for the New South · 1 March 2024 English

One feature though must be highlighted in the case of Brazil: the transition from low- to middle-income types of labor occupancy and economic structure deaccelerated before the end of the …

A few countries that managed to escape the Dutch Disease, including Botswana, Chile, and Indonesia, all Natural-resource wealth makes countries susceptible to the Dutch Disease, which, in its broadest sense, refers to an to prevent real appreciation or to avoid the Dutch Disease. Others recommend standalone policies, such the Case of Brazil argued that the effects of Dutch Disease can be reduced if there is unemployment in the so that the greater spending associated with Dutch Disease actually draws unemployed resources into the


World Bank Group · 28 February 2024 English

Papua New Guinea has abundant resources in the form of oil and mineral wealth. But a complex set of factors, including systemic gender inequality, underinvestment in non-extractive sectors, and fragility …

moderate to high in 2021 (World Bank Group 2022). Dutch disease, which is typical of a resource-dependent economy


View more