IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/81010.html
   My bibliography  Save this paper

Analysis of the “Dutch Disease” effect: The case of resource-rich ASEAN economies

Author

Listed:
  • Taguchi, Hiroyuki
  • Soukvisan, Khinsamone

Abstract

This paper examines the applicability of the Dutch Disease hypothesis by using a vector auto-regression model, focusing on the five resource-rich and middle-income economies in the Association of Southeast Asian Nations (ASEAN): Malaysia and Indonesia as the forerunners, and Lao PDR, Myanmar and Vietnam as the latecomers at their development processes. The empirical study found that the latecomers of Lao PDR and Myanmar seemed to suffer from the Dutch Disease over the sample period; and the forerunners of Indonesia and Malaysia, on the other hand, appeared to have no Dutch Disease effect at least in the current period of 1995-2015, although Indonesia had experienced the Dutch Disease in the previous period of 1970-1995. The lessons from the forerunners’ experiences in order for the latecomers to escape from the Ditch Disease are to establish some funding system of allocating resource revenues for investment projects; to diversify domestic industries through improving business environments; and to improve institutional quality to reinforce resource governance.

Suggested Citation

  • Taguchi, Hiroyuki & Soukvisan, Khinsamone, 2017. "Analysis of the “Dutch Disease” effect: The case of resource-rich ASEAN economies," MPRA Paper 81010, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:81010
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/81010/1/MPRA_paper_81010.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    2. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    3. Kyophilavong, Phouphet & Senesouphap, Chanthachonh & Yawdhacksa, Somnack, 2012. "Resource Boom, Growth and Poverty in Laos: what can we learn from other countries and policy simulations?," PEP Policy Briefs 161661, Partnership for Economic Policy (PEP).
    4. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344.
    5. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    6. 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 825-848, December.
    7. Usui, Norio, 1997. "Dutch disease and policy adjustments to the oil boom: a comparative study of Indonesia and Mexico," Resources Policy, Elsevier, vol. 23(4), pages 151-162, December.
    8. Usui, Norio, 1996. "Policy adjustments to the oil boom and their evaluation: The Dutch disease in Indonesia," World Development, Elsevier, vol. 24(5), pages 887-900, May.
    9. Kareem Ismail, 2010. "The Structural Manifestation of the ‘Dutch Disease’; The Case of Oil Exporting Countries," IMF Working Papers 10/103, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Dutch Disease; ASEAN; Vector auto-regression model; Natural resources; Resource fund; Diversification; Institutional quality;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:81010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.