Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries

Alssadek, Marwan; Benhin, James

doi:10.1016/j.resourpol.2021.102362

Cited by 18 publications

(22 citation statements)

References 42 publications

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“…Allegret and Benkhodja (2014) observe only a slight change in the tradable sector with wages. In contrast, Alssadek and Benhin (2021) find the migration of labor from the manufacturing and agriculture sectors to the booming sector. Contradicting the theory, however, they also find a migration of labor from the service sector to the booming sector, as the latter also declines during the boom.…”

Section: Resultsmentioning

confidence: 84%

“…On the other hand, they find the effect of the real exchange rate is a possibility in that the commodity sector can support the tradable sector in the long run, but do not justify this further (Boire and Nell, 2021, p. 1). Alssadek and Benhin (2021) find confirmation for the DD model in that the boom leads to an appreciation of the exchange rate and decline in the tradable sector of the manufacturing and agricultural sectors (Alssadek and Benhin, 2021, p. 10). Saibu and Oladeji (2008) examine expected and unexpected policy shocks, focusing on monetary and fiscal policy.…”

Section: Resultsmentioning

confidence: 89%

“…Contradicting the theory, however, they also find a migration of labor from the service sector to the booming sector, as the latter also declines during the boom. Alssadek and Benhin;Taiebnia, Ali and Shakeri, Gity (2021; find in the oilproducing countries studied, compared to the non-high oil-producing countries, the price of oil and thus the booming sector causes the other sectors to shrink. However, they see only limited confirmation of the DD hypothesis, since the booming sector does have a strong negative impact on the manufacturing and agriculture sector.…”

Section: Resultsmentioning

confidence: 99%

“…This development is called RME and represents direct deindustrialization. (Alssadek and Benhin, 2021;Corden and Neary, 1982) Other authors divide the effects into the windfall effect, SE, RME and combined effect. The windfall effect refers specifically to the inflow of foreign currency into the local currency.…”

Section: Literature Reviewmentioning

confidence: 99%

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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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Section: Resultsmentioning

confidence: 84%

Section: Resultsmentioning

confidence: 89%

Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Approaches to deal with a Dutch Disease : A Systematic Review

Schulz¹

2022

Mobility in a Globalised World 2021

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“…The heteroscedasticity, cross-sectional dependency. and serial correlation tests are necessary for the panel data [83]. The modified Wald test, Frees test, and Wooldridge test are used to check for the above problems, respectively [84][85][86].…”

Section: Basic Estimation Resultsmentioning

confidence: 99%

Does Economic Growth Lead to an Increase in Cultivated Land Pressure? Evidence from China

Wang

Hong-bo

2022

Land

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With economic growth, people’s living standards improve, and more cultivated land is needed to meet food demand. Meanwhile, the economic growth and urban expansion in China since 1978 has led to the loss of considerable amounts of cultivated land. Thus, the contradiction between “economic growth” and “food security” becomes increasingly prominent. Studying the impact of economic growth on cultivated land population support pressure is the basis for easing this problem. This study uses the cultivated land pressure index to represent cultivated land population support pressure, and explores the relationship between economic growth and cultivated land pressure based on the panel data of 31 provinces in China from 2000 to 2017. The feasibility generalized least squares estimation and the fixed effect model based on Driscoll and Kraay standard errors are used. The results show that: (1) the impact of economic growth on cultivated land pressure is an N-shaped or U-shaped curve; and (2) there are regional differences in the impact of economic growth on cultivated land pressure. The cultivated land pressure in economically developed regions and main grain production regions responds slowly to the impact of economic growth. Therefore, some policy recommendations are put forward, such as paying attention to cultivated land protection and controlling disorderly urban expansion.

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