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Do international remittances cause Dutch disease?

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  • Beja, Edsel Jr.

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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39302.

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Date of creation: 01 Jun 2010
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Handle: RePEc:pra:mprapa:39302

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Keywords: Dutch disease; international remittances;

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  1. Comin, D. & Hobijn, B., 2003. "Cross-Country Technology Adoption: Making the Theories Face the Facts," Working Papers, C.V. Starr Center for Applied Economics, New York University 03-04, C.V. Starr Center for Applied Economics, New York University.
  2. Samir Jahjah & Ralph Chami & Connel Fullenkamp, 2003. "Are Immigrant Remittance Flows a Source of Capital for Development," IMF Working Papers 03/189, International Monetary Fund.
  3. Beja, Edsel, 2009. "Things are different when you open up: Economic openness, domestic economy, and income," MPRA Paper 12802, University Library of Munich, Germany.
  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. 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, Federal Reserve Bank of Atlanta 2008-12, Federal Reserve Bank of Atlanta.
  6. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 92(368), pages 825-48, December.
  7. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, Elsevier, vol. 32(8), pages 1407-1417, August.
  8. Syrquin, M. & Chenery, H.B., 1989. "Patterns Of Development, 1950 To 1983," World Bank - Discussion Papers, World Bank 41, World Bank.
  9. Robert Burgess & V. Haksar, 2005. "Migration and Foreign Remittances in the Philippines," IMF Working Papers 05/111, International Monetary Fund.
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