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On Resource Booms and Busts: Some Aspects of the Dutch Disease in Six Developing Economies

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Author Info
James H. Cassing
Jerome C. Wells
Edgar L. Zamalloa

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Abstract

This paper examines changes in national product and net welfare over resource boom and bust cycles in six developing economies: Chile, Zaire, Zambia, Indonesia, Mexico, and Nigeria. The authors find that changes in the terms of trade account for over 25 to 33 percent of the changes in net welfare, that capital movements usually act procyclically, and that a fall in the growth rate of real product accompanies the end of the resource boom. They also examine changes in the government's share in output over the resource cycle and the pro- or anti-cyclical nature of real outputs and price movements in the "lagging sectors" of the economy.

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File URL: http://college.holycross.edu/eej/Volume13/V13N4P373_387.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 13 (1987)
Issue (Month): 4 (Oct-Dec)
Pages: 373-387
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Handle: RePEc:eej:eeconj:v:13:y:1987:i:4:p:373-387

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This page was last updated on 2009-12-13.

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