Abstract:Some rights reserved. 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The fi ndings, interpretations, and conclusions expressed in this work … Show more
“…29 See, for example, Dell'Ariccia et al (2008) and Kose et al (2006). Also see Chapter 6 of Gill et al (2014) for Eurasia's experience of volatile capital inflows. 30 Resource rich countries that have adopted full dollarization include Ecuador and Timor-Leste.…”
Section: Myth 13: Large Foreign Capital Inflows Can Cause a Dutch Dismentioning
confidence: 99%
“…The pain of adjustment can be reduced through a set of policy actions aimed at removing such barriers and harnessing an enabling business environment (for more discussion, see Chapter 6 in Gill et al, 2014). Steps to remove supply-side bottleneckslabor market rigidities, poor access to finance, complex administrative procedures for business start-ups, cumbersome business licensing requirements, just to name a fewcan improve the economy's flexibility and help facilitate supply response to increased demand, thereby speeding up the adjustment process.…”
Section: Removing Obstacles To Business Activity and Boosting Overallmentioning
This paper examines the theory of Dutch disease and its implications for practical policy questions. Dutch disease is a term that is well-known to economists and development practitioners. But it is also a concept that is often conflated with "resource curse" and misinterpreted as a "disease" that necessarily causes adverse impacts on the economy. The paper points out that many of the seemingly well-established arguments in this field are not necessarily grounded in theory or empirical evidence. Great care is needed in diagnosing Dutch disease and formulating policy prescriptions based on the theoretical framework, given the restrictive assumptions that may not be fully applicable and the limited relevance to today's inextricably intertwined trade flows.
“…29 See, for example, Dell'Ariccia et al (2008) and Kose et al (2006). Also see Chapter 6 of Gill et al (2014) for Eurasia's experience of volatile capital inflows. 30 Resource rich countries that have adopted full dollarization include Ecuador and Timor-Leste.…”
Section: Myth 13: Large Foreign Capital Inflows Can Cause a Dutch Dismentioning
confidence: 99%
“…The pain of adjustment can be reduced through a set of policy actions aimed at removing such barriers and harnessing an enabling business environment (for more discussion, see Chapter 6 in Gill et al, 2014). Steps to remove supply-side bottleneckslabor market rigidities, poor access to finance, complex administrative procedures for business start-ups, cumbersome business licensing requirements, just to name a fewcan improve the economy's flexibility and help facilitate supply response to increased demand, thereby speeding up the adjustment process.…”
Section: Removing Obstacles To Business Activity and Boosting Overallmentioning
This paper examines the theory of Dutch disease and its implications for practical policy questions. Dutch disease is a term that is well-known to economists and development practitioners. But it is also a concept that is often conflated with "resource curse" and misinterpreted as a "disease" that necessarily causes adverse impacts on the economy. The paper points out that many of the seemingly well-established arguments in this field are not necessarily grounded in theory or empirical evidence. Great care is needed in diagnosing Dutch disease and formulating policy prescriptions based on the theoretical framework, given the restrictive assumptions that may not be fully applicable and the limited relevance to today's inextricably intertwined trade flows.
“…As an example, the United Arab Emirates has used oil rents for public investments in infrastructure and its human capital, putting it in the high human development category. Botswana has also managed its diamond wealth capably, as evidenced through improved education and health 26 . Thus, the trajectory from low-income to middle-income often starts with an abundance of natural capital and then using it to invest in education and health (human capital).…”
“…Not all the countries that try to promote such exports succeed, but those that do not try, virtually never engineer growth miracles. 2 It should be noted though that there is an opposite view -for instance, in the recent paper from the World Bank (Gill, Izvorski, van Eeghen & De Rosa, 2014). It concludes that it is not clear whether diversifying exports and production is necessary for development and that governments need worry less about the composition of exports and the profile of production and more about national asset portfolios-the blend of natural resources, built capital, and economic institutions.…”
Section: Fig 1 Manufactures Exports % Of Merchandise Exportmentioning
This paper discusses Uzbekistan's recent experience with structural shifts and industrial policy, with a particular focus on various industry policy instruments, and its implications for the existing theories of industrial policy. In particular, two major hypotheses are discussed: (1) the hypothesis of Haussmann, Hwang and Rodrik (the more technologically sophisticated the export structure, the better for growth) and (2) the hypothesis of Justin Yifu Lin (export specialization should build on existing comparative advantages and should not jump over the necessary technological stages).
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