We examine aid-induced Dutch Disease — after controlling for the effects of remittances and FDI flows — in the context of two North African countries, Morocco and Tunisia. We do so by performing a multivariate time series analysis of aggregated annual data over the period 1980-2009. Aid...

Although the core model of the Dutch Disease makes unambiguous predictions regarding the negative effect of a resource boom on a country's manufacturing exports, the empirical literature that has followed has not clearly identified this effect. I attribute this to the failure of the existing...

This paper extends the literature on the Dutch disease by showing how natural resources can reduce secondary-sector employment and investment through channels involving labor-market externalities and exchange-rate volatility. We then look at data from Iceland - which is one of few OECD countries...

In this paper, we compare, first, the impact of a windfall and a boom sectors on the economy of an oil exporting country and their welfare implications; in a second step, we analyze how monetary policy should be conducted to insulate the economy from the main impact of these shocks, namely the...

This paper investigates the impact of long-run terms-of-trade shocks. Analytically, we show that, if capital goods are largely importable or the labor supply is sufficiently elastic, then natural-resource booms increase aggregate investment and worsen the current account, but Dutch `Disease`...

Traditional studies of the Dutch disease do not account for productivity spillovers between the booming resource sector and other domestic sectors. We put forward a simple theory model that allows for such spillovers. We then identify and quantify these spillovers using a Bayesian Dynamic Factor...

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...

This paper conducts a descriptive statistical analysis of employment in Azerbaijan covering the period between 2000 and 2018 to study the effects of the Dutch disease hypothesis. Azerbaijan has been a research subject of the Dutch disease due to the boom in the oil sector since independence from...

We construct a two-period general equilibrium model to evaluate policies affecting agricultural migration and exports. The model is applied to Mexico for the period 1986-1987 to obtain certain qualitative policy conclusions related to the 'Dutch disease' brought about by oil price increases....

Traditional studies of the Dutch disease do not typically account for productivity spillovers between the booming energy sector and non-oil sectors. This study identifies and quantifies these spillovers using a Bayesian Dynamic Factor Model (BDFM). The model allows for resource movements and...