Oil Stock Discovery and Dutch Disease

We set out a model of a small open economy exporting oil and a traditional ex- portable in return for produced capital. The small open economy also has local produc- tion of a non-traded good. We …rst observe that the size of the traditional export sector declines with an exogenous increase in the country’s oil stock. Strong Dutch disease (SDD) nvolves a net diminution in produced capital in use in the small open econ- omy after the oil discovery shock. SDD turns on the exportable sector being relatively capital intensive.


Issue Date:
2008-03
Publication Type:
Working or Discussion Paper
Record Identifier:
https://ageconsearch.umn.edu/record/273639
Language:
English
Total Pages:
12
JEL Codes:
F43; Q33; Q32
Series Statement:
Working Paper No. 1163




 Record created 2018-06-13, last modified 2018-06-14

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