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Do international remittances cause Dutch disease?

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  • Edsel L. Beja Jr

    ()
    (Department of Economics, Ateneo de Manila University, Quezon City, Philippines.)

Abstract

Dutch disease is a condition whereby a booming export sector along with a concomitant strengthening of the non-tradable sector cause a deterioration in the rest of the tradable sector. Regression analysis finds that Dutch disease due to international remittances appears to afflict the developing countries more than the upper income countries. Developing countries, however, can inoculate their economies with policies that strengthen the domestic economy and facilitate structural change to keep the disease from setting in.

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Bibliographic Info

Article provided by Transnational Press London, UK in its journal Migration Letters.

Volume (Year): 8 (2011)
Issue (Month): 2 (October)
Pages: 132-140

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Handle: RePEc:mig:journl:v:8:y:2011:i:2:p:132-140

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Keywords: Dutch disease; international remittances;

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  1. Beja, Edsel, 2009. "Things are different when you open up: Economic openness, domestic economy, and income," MPRA Paper 12802, University Library of Munich, Germany.
  2. Emmanuel K.K. Lartey & Federico S. Mandelman & Pablo A. Acosta, 2008. "Remittances, exchange rate regimes, and the Dutch disease: a panel data analysis," Working Paper 2008-12, Federal Reserve Bank of Atlanta.
  3. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
  4. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-80, November.
  5. Comin, D. & Hobijn, B., 2004. "Cross-country technology adoption: making the theories face the facts," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 39-83, January.
  6. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
  7. Robert Burgess & V. Haksar, 2005. "Migration and Foreign Remittances in the Philippines," IMF Working Papers 05/111, International Monetary Fund.
  8. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
  9. Syrquin, M. & Chenery, H.B., 1989. "Patterns Of Development, 1950 To 1983," World Bank - Discussion Papers 41, World Bank.
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