Foreign exchange windfalls such as those from natural resource revenues change non-resource exports, imports, and the … increase imports by 25 cents, implying a negligible effect on foreign saving. The negative per dollar impact on exports is … that the response to a dollar of resource revenue is, approximately, to decrease non-resource exports by 75 cents and …

gap by exploring to what extent concentration of a country’s non-resource export basket is determined by their exports of … countries with larger shares of natural resources in exports have more concentrated non-resource export baskets. Second, we find … capital-intensive exports tend to dominate the export basket of countries prone to Dutch disease episodes …