Services, Inequality, and the Dutch Disease

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Battaile, Bill
dc.contributor.author
Chisik, Richard
dc.contributor.author
Onder, Harun
dc.date.accessioned
2014-08-15T16:05:46Z
dc.date.available
2014-08-15T16:05:46Z
dc.date.issued
2014-07
dc.description.abstract
This paper shows how Dutch disease effects may arise solely from a shift in demand following a natural resource discovery. The natural resource wealth increases the demand for non-tradable luxury services due to non-homothetic preferences. Labor that could be used to develop other non-resource tradable sectors is pulled into these service sectors. As a result, manufactures and other tradable goods are more likely to be imported, and learning and productivity improvements accrue to the foreign exporters. However, once the natural resources diminish, there is less income to purchase the services and non-resource tradable goods. Thus, the temporary gain in purchasing power translates into long-term stagnation. As opposed to conventional models where income distribution has no effect on economic outcomes, an unequal distribution of the rents from resource wealth further intensifies the Dutch disease dynamics within this framework.
en
dc.identifier
http://documents.worldbank.org/curated/en/2014/07/19760476/services-inequality-dutch-disease
dc.identifier.uri
http://hdl.handle.net/10986/19359
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank Group, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6966
dc.rights
CC BY 3.0 IGO
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
AGGREGATE CONSUMPTION
dc.subject
AGGREGATE DEMAND
dc.subject
AGGREGATE DEMANDS
dc.subject
AGRICULTURE
dc.subject
AUTOMOBILES
dc.subject
BENCHMARKING
dc.subject
BILL
dc.subject
COMMODITY
dc.subject
COMMODITY PRICE
dc.subject
COMMODITY PRICE BOOM
dc.subject
COMPARATIVE ADVANTAGE
dc.subject
CONSOLIDATION
dc.subject
CONSTANT RETURNS TO SCALE
dc.subject
CONSUMERS
dc.subject
CURRENCY
dc.subject
CURRENCY APPRECIATION
dc.subject
DEBT
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DIRECT PAYMENTS
dc.subject
DISTORTIONS
dc.subject
DISTRIBUTION OF INCOME
dc.subject
DOMESTIC CONSUMPTION
dc.subject
DUTCH DISEASE
dc.subject
E-MAIL
dc.subject
ECONOMIC ENVIRONMENT
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC MODELS
dc.subject
ECONOMIC OUTCOMES
dc.subject
ECONOMIC POLICY
dc.subject
ECONOMIC THEORY
dc.subject
ECONOMICS LITERATURE
dc.subject
ECONOMIES OF SCALE
dc.subject
ELASTICITY
dc.subject
EMERGING MARKETS
dc.subject
EMERGING MARKETS FINANCE
dc.subject
EQUATIONS
dc.subject
EQUILIBRIUM
dc.subject
EQUILIBRIUM CONDITIONS
dc.subject
EXCESS DEMAND
dc.subject
EXCHANGE RATE
dc.subject
EXCHANGE-RATE
dc.subject
EXPORT REVENUE
dc.subject
EXPORT REVENUES
dc.subject
EXPORTERS
dc.subject
EXPORTS
dc.subject
FACTORS OF PRODUCTION
dc.subject
FINANCIAL DEVELOPMENT
dc.subject
FOREIGN EXCHANGE
dc.subject
FREE TRADE
dc.subject
FUTURE RESEARCH
dc.subject
GDP
dc.subject
GOLD
dc.subject
HOME COUNTRY
dc.subject
IMPORTS
dc.subject
INCOME
dc.subject
INCOME EFFECT
dc.subject
INCOME ELASTICITY
dc.subject
INCOME INEQUALITY
dc.subject
INCOME LEVELS
dc.subject
INSPECTION
dc.subject
INTERNATIONAL ECONOMICS
dc.subject
INTERNATIONAL TRADE
dc.subject
LABOR DEMAND
dc.subject
LABOR FORCE
dc.subject
LABOR MARKET
dc.subject
LABOR PRODUCTIVITY
dc.subject
LABOR SUPPLY
dc.subject
LOW-INCOME COUNTRIES
dc.subject
MANUFACTURING
dc.subject
MARGINAL PROPENSITY TO CONSUME
dc.subject
MARKET CONDITIONS
dc.subject
MARKET EQUILIBRIUM
dc.subject
MATHEMATICAL PROPERTIES
dc.subject
MIDDLE INCOME COUNTRIES
dc.subject
NATURAL RESOURCE
dc.subject
NATURAL RESOURCES
dc.subject
OIL EXPORTS
dc.subject
OIL MARKET
dc.subject
OIL REVENUES
dc.subject
OPEN ACCESS
dc.subject
OPEN ECONOMY
dc.subject
OUTPUT
dc.subject
PHONE
dc.subject
POLITICAL ECONOMY
dc.subject
POLITICAL INSTITUTIONS
dc.subject
POVERTY REDUCTION
dc.subject
PRICE OF GOOD
dc.subject
PRICE OF OIL
dc.subject
PRODUCTION PROCESS
dc.subject
PRODUCTIVITIES
dc.subject
PRODUCTIVITY
dc.subject
PURCHASING POWER
dc.subject
REAL EXCHANGE RATE
dc.subject
REMITTANCES
dc.subject
RENTS
dc.subject
RESOURCE MOVEMENT EFFECT
dc.subject
RESULT
dc.subject
RESULTS
dc.subject
SOCIAL SERVICES
dc.subject
STRUCTURAL CHANGE
dc.subject
TAXATION
dc.subject
TIME PERIOD
dc.subject
TRADABLE GOODS
dc.subject
USES
dc.subject
UTILITY FUNCTION
dc.subject
WAGES
dc.subject
WEALTH
dc.subject
WEB
dc.subject
WORLD DEMAND
dc.subject
WORLD MARKETS
dc.title
Services, Inequality, and the Dutch Disease
en
okr.crosscuttingsolutionarea
Jobs
okr.date.disclosure
2014-07-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2014/07/19760476/services-inequality-dutch-disease
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Finance and Markets
okr.globalpractice
Transport and ICT
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6966
okr.identifier.externaldocumentum
000158349_20140703144429
okr.identifier.internaldocumentum
19760476
okr.identifier.report
WPS6966
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/07/03/000158349_20140703144429/Rendered/PDF/WPS6966.pdf
en
okr.topic
Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic
Private Sector Development :: E-Business
okr.topic
Economic Theory and Research
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Macroeconomics and Economic Growth
okr.unit
Economic Policy and Debt Unit, Poverty Reduction and Economic Management Network
okr.volume
1 of 1

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