40 Years of Dutch Disease Literature: Lessons for Developing Countries

Mien, Edouard; Goujon, Michaël

doi:10.1057/s41294-021-00177-w

Cited by 26 publications

(15 citation statements)

References 74 publications

(122 reference statements)

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“…Regarding the influencing factors of China's regional economic growth, the previous literature has analyzed many different aspects, such as the construction of infrastructure [13,14], domestic financial development [15,16], foreign direct investment [17,18], trade openness [19,20], political and administrative institution [21], and the government's fiscal and monetary policies [22,23]. Among the different places in China, resource-based cities should be specially studied because their resource-dependent economic system is not sustainable in the long run, and many of them faced severe development problems as described by previous studies on the "Dutch disease" [5][6][7]11,12] and "resource curse" [9,[24][25][26].…”

Section: Literature Reviewmentioning

confidence: 99%

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Did China’s “National Sustainable Development Plan of Resource-Based Cities” Promote Economic Growth?

Wang

2022

Sustainability

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This study utilizes a difference-in-difference (DID) regression model to evaluate the impact of China’s “National Sustainable Development Plan of Resource-Based Cities (2013–2020)” on economic growth in resource-based cities. The analysis is based on the data covering 329 Chinese cities during 2006–2019. Economic growth is measured by the annual growth rate of gross domestic product (GDP). It was found that the policy had a significantly negative impact on economic growth. Further analysis suggests that the policy depressed innovation in resource-based cities, and these cities did not expand their labor and capital inputs. These two phenomena can help explain why the policy’s effect on economic growth was negative, rather than positive. Moreover, our study reports that the effect of the policy was heterogeneous across different cities, depending on their development stages and spatial locations. Overall, our study detects an undesirable effect of the policy. The research findings call for more actions to promote macroeconomic growth during the process of economic transformation in China’s resource-based cities.

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Section: Literature Reviewmentioning

confidence: 99%

“…Numerous resource-based cities have suffered severe environmental pollution, resource depletion, economic recession, and brain drain. Therefore, they need to transform their development patterns and seek sustainable approaches [9][10][11][12].…”

Section: Introduction 1research Backgroundmentioning

confidence: 99%

Did China’s “National Sustainable Development Plan of Resource-Based Cities” Promote Economic Growth?

Wang

2022

Sustainability

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“…Bruno and Sachs;Feltenstein;van Wijnbergen (1982;1992; argue against government saving revenues from the booming resource sector and for government recouping from society through subsidies to invest in the declining sectors. Mien and Goujon (2021) address, based on the described results, for developing countries that it needs a successful tax system in the country. Thus, the money should be used in industries that would not have continued without the commodity boom.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition, the risk must be included, if the subsidies to the sectors are linked to the revenues, that these fluctuate strongly in accordance with the commodity price. According to Mien and Goujon (2021), the assumption of the first two points is difficult to make in countries with corruption. (Mien and Goujon, 2021, p. 27) In the trade-off between investing and saving commodity revenues, Mien (2021) concludes that the "gradual scaling-up" approach according to Richmond, C., Yackovlev, I. and Yang, S.-C. S. ( 2015) comparable to the Berg et al ( 2013) "sustainable investment" approach is a good option by continuously increasing public revenues.…”

Section: Literature Reviewmentioning

confidence: 99%

Approaches to deal with a Dutch Disease : A Systematic Review

Schulz¹

2022

Mobility in a Globalised World 2021

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The Dutch disease model was broadly applied in the past on different countries and causing sources creating revenues (Benjamin et al., 1987; Corden, 2012; Égert, 2012; Fardmanesh, 1991; Larsen, 2006; Niftiyev and Czech, 2020; van der Ploeg and Venables, 2013; Zhang et al., 2021). In reference to the question of how countries and governments can successfully deal with resource deposits, Werner (2012) shows that national resource funds are an opportunity to overcome the possible strongly negative economic development. This presented chapter conducts a systematic literature review with empirical studies that deal with countries facing occurring or possible occurring Dutch disease because of resource deposits like minerals or oil. It shows that, industrial diversification, a favourable business environment, attracted domestic and foreign investment in the industrial and agricultural sectors as well as good institutional quality are recommended to prevent a Dutch Disease.

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“…For example, agriculture employs a Constant Elasticity of Substitution (CES) production function that combines the energy of oil products with chemical fertilizer.46 The Dutch disease occurs when a resource boom reduces the internal incentives to produce and the international competitiveness of domestically produced non-resource tradable goods(Mien and Goujon, 2021).…”

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confidence: 99%