Revisiting the Dutch disease thesis from the perspective of value-added trade

Natural resources, financial development and structural transformation in Sub-Saharan Africa

“…Economic diversification is commonly proposed as the primary strategy to counter the resource curse in developing countries [ 27 , 29 ]. The underlying idea is to expand the productive capacity of sectors other than natural resources.…”

An exploration of the interdependencies betweeenthe real exchange rate andthe size ofthe tradable sector ina small open economy

“…Following Chang et al (2021), the Dutch disease literature commonly uses output growth or the share of output in GDP across sectors to detect symptoms of it, e.g. an appreciated real exchange rates.…”

“…Theoretical real exchange rate models for developing economies consider it as an endogenous variable determined in a complete macroeconomic system where macroeconomic fundamentals are key driving variables underlying its movements. Rather than focusing on real exchange rates, Dutch disease models analyse the role of the fundamentals on the size of the tradable and non-tradable sectors and emphasize that appreciated real exchange rates induce resource allocation favorable to sectors other than the industrial sectors; they consider thus real exchange rate as a determinant of de-industrialization in developing economies; see Araujo et al (2021), Swan (1955), Salter (1959), Purvis (1982, 1983), Corden (1984), Sachs and Warner (1995), Fardmanesh (1990), Rodrik (2008), Rajan and Subramanian (2011), García-Cicco and Kawamura (2015), Mejalenko (2015) and Chang et al (2021) and Nülle and Davis (2018).…”

“…Up to now, the sequence of the mechanisms through which changes in the macroeconomic fundamentals affect the tradable sector has not been studied yet, exceptions are Fardmanesh (1990) who measures the spending effect and the world price effect which, in his model, includes the resource movement effect, Bjørnland et al (2019) who incorporates the productivity dynamics from the spending as well as the resource movement effect, and Chang et al (2021) who provide seven Dutch disease indicators, two indicators measuring the resource movement effects and five the spending effects for a 14 countries sample. This research postulates that macroeconomic fundamentals, not only resource or international prices booms, generate resource and spending effects.…”

Emission reduction and value‐added export nexus at firm level

“…In comparison with traditional trade statistics, trade in value added reveals economic gains from trade and the effects of trade on the environment more accurately and comprehensively. The main reason is that traditional trade statistics only focus on export volume and ignore the share of value added in export products (Chang et al, 2021; Duval et al, 2016; Johnson & Noguera, 2012). The latter is important as processing trade accounts for almost half of China's total trade.…”