Dealing with Dutch Disease

dc.creatorBrahmbhatt, Milan
dc.creatorCanuto, Otaviano
dc.creatorVostroknutova, Ekaterina
dc.date2012-08-13T10:38:06Z
dc.date2012-08-13T10:38:06Z
dc.date2010-06
dc.date.accessioned2026-07-01T00:44:18Z
dc.descriptionThis note looks at so-called Dutch disease, a phenomenon reflecting changes in the structure of production in the wake of a favorable shock (such as a large natural resource discovery, a rise in the international price of an exportable commodity, or the presence of sustained aid or capital inflows). Where the natural resources discovered are oil or minerals, a contraction or stagnation of manufacturing and agriculture could accompany the positive effects of the shock, according to the theory. The note considers channels through which such natural resource wealth can affect the economy. It also focuses on the development implications of Dutch disease, particularly the potential negative effects related to productivity dynamics and volatility; and concludes with a summary of possible policy responses, including the mix of fiscal, exchange rate, and structural reform policies.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2010/06/12365761/dealing-dutch-disease
dc.identifierhttps://hdl.handle.net/10986/10174
dc.identifierhttps://doi.org/10.1596/10174
dc.identifier.urihttp://hdl.handle.net/123456789/410174
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationEconomic Premise; No. 16
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectABUNDANCE
dc.subjectADVERSE EFFECTS
dc.subjectADVERSE IMPACT
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectAMERICAN ECONOMIC REVIEW
dc.subjectBALANCE-OF-PAYMENTS CRISES
dc.subjectBENCHMARK
dc.subjectBUSINESS CLIMATE
dc.subjectBUSINESS REGULATIONS
dc.subjectCAPITA GROWTH
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL INTENSITY
dc.subjectCENTRAL BANK
dc.subjectCIVIL WAR
dc.subjectCOLLATERAL
dc.subjectCOMMODITIES
dc.subjectCOMMODITY
dc.subjectCOMMODITY PRICE
dc.subjectCOMMODITY PRICES
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMER PRICE
dc.subjectCONSUMER PRICE INDEX
dc.subjectDEBT
dc.subjectDEBT LEVELS
dc.subjectDEBT OVERHANG
dc.subjectDEMOCRACY
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPING ECONOMIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDISINFLATION
dc.subjectDOMESTIC ECONOMY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INTERDEPENDENCE
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectECONOMIC VOLATILITY
dc.subjectELASTICITY
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT COMPETITIVENESS
dc.subjectEXPORT GROWTH
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNALITIES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL POLICY
dc.subjectFISCAL RULE
dc.subjectFISCAL RULES
dc.subjectFLEXIBLE EXCHANGE RATES
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFUTURE GROWTH
dc.subjectGDP
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH POTENTIAL
dc.subjectINCOME
dc.subjectINCOME GROUP
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINCREASING RETURNS
dc.subjectINCREASING RETURNS TO SCALE
dc.subjectINFLATION TARGETING
dc.subjectINFLOWS OF CAPITAL
dc.subjectINSTITUTIONAL WEAKNESSES
dc.subjectINSTRUMENT
dc.subjectINTERNATIONAL MONETARY FUND
dc.subjectINVESTING
dc.subjectINVESTMENT FUND
dc.subjectINVESTMENT PROJECTS
dc.subjectLDCS
dc.subjectLIBERALIZATION
dc.subjectLOW- INCOME COUNTRIES
dc.subjectLOW-INCOME ECONOMIES
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC VOLATILITY
dc.subjectMACROECONOMICS
dc.subjectMISMANAGEMENT
dc.subjectMONETARY ECONOMICS
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectNATIONAL INCOME
dc.subjectNATURAL RESOURCE
dc.subjectNATURAL RESOURCES
dc.subjectNEGATIVE IMPACT ON GROWTH
dc.subjectNET EXPORTS
dc.subjectOIL PRICE
dc.subjectOPEN ECONOMY
dc.subjectOUTPUT
dc.subjectOVERVALUATION
dc.subjectPERMANENT INCOME
dc.subjectPOLICY RESPONSE
dc.subjectPOLICY RESPONSES
dc.subjectPOSITIVE EFFECTS
dc.subjectPRICE VOLATILITY
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE INVESTMENT
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPUBLIC CONSUMPTION
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SPENDING
dc.subjectREAL EFFECTIVE EXCHANGE RATE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL-EXCHANGE-RATE UNCERTAINTY
dc.subjectRED TAPE
dc.subjectRENT SEEKING
dc.subjectREVIEW OF ECONOMICS
dc.subjectSAVINGS
dc.subjectSTAGNATION
dc.subjectTAX
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE SHOCKS
dc.subjectUNEMPLOYMENT
dc.subjectVALUE ADDED
dc.subjectVOLATILITY
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWORLD MARKET
dc.subjectWORLD MARKET INTEGRATION
dc.titleDealing with Dutch Disease

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