Publication:
Demystifying Dutch Disease

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dc.contributor.authorKojo, Naoko C.
dc.date.accessioned2014-08-15T14:31:26Z
dc.date.available2014-08-15T14:31:26Z
dc.date.issued2014-07
dc.description.abstractThis 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. Countries facing large inflows of foreign currency should focus on safeguarding the domestic economy from the volatility of international commodity and capital markets, and building robust institutions to reduce adjustment costs and boost broader competitiveness. A policy package needs to be comprehensive, covering macroeconomic and structural policy measures, and should be calibrated to target country specific concerns. Policies may need to be adjusted continuously in view of the evolving dynamics of the global and domestic economic environment.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/07/19893937/demystifying-dutch-disease
dc.identifier.doi10.1596/1813-9450-6981
dc.identifier.urihttps://hdl.handle.net/10986/19345
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6981
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectDUTCH DISEASE
dc.subjectFOREIGN CURRENCY INFLOWS
dc.subjectGLOBAL AND DOMESTIC ECONOMIC ENVIRONMENTS
dc.subjectSAFEGUARDING THE DOMESTIC ECONOMY
dc.subjectTRADE FLOWS
dc.titleDemystifying Dutch Diseaseen
dspace.entity.typePublication
okr.crossref.titleDemystifying Dutch Disease
okr.date.disclosure2014-07-01
okr.date.doiregistration2025-04-10T07:21:32.335902Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/07/19893937/demystifying-dutch-disease
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid743741468336611117
okr.identifier.doi10.1596/1813-9450-6981
okr.identifier.externaldocumentum000158349_20140728153350
okr.identifier.internaldocumentum19893937
okr.identifier.reportWPS6981
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/07/28/000158349_20140728153350/Rendered/PDF/WPS6981.pdfen
okr.topicEnvironmental Economics and Policies
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth
okr.topicEnvironment
okr.unitMacroeconomics and Fiscal Management Global Practice Group
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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