Booming Sector and De-Industrialisation in a Small Open Economy

Corden WM & Neary JP (1982). Booming Sector and De-Industrialisation in a Small Open Economy. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-82-058

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Abstract

This paper presents a theoretical analysis of the "Dutch Disease": the phenomenon whereby a boom in one traded goods sector squeezes profitability in other traded goods sectors, both by directly bidding resources away from them and by placing upward pressure on the exchange rate. The effects of such a boom on. resource allocation and income distribution are studied in a variant of the "Australian" model of a small open economy, under different assumptions about the degree of intersectoral factor mobility.

Item Type: Monograph (IIASA Collaborative Paper)
Research Programs: System and Decision Sciences - Core (SDS)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 01:52
Last Modified: 21 Jul 2016 09:34
URI: http://pure.iiasa.ac.at/2060

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