Gylfason, T. and Herbertsson, T. and Zoega, Gylfi (1999) A mixed blessing: natural resources and economic growth. Macroeconomic Dynamics 3 (2), pp. 204-225. ISSN 1365-1005.
Abstract
This paper diagnoses the symptoms of the Dutch disease in a two-sector stochastic endogenous growth model. A productive, low-skill-intensive primary sector causes the currency to appreciate in real terms, thus hampering the development of a high-skill-intensive secondary sector and thereby reducing growth. Moreover, the volatility of the primary sector generates real-exchange-rate uncertainty and may thus reduce investment and learning in the secondary sector and hence also growth. Cross-sectional and panel regressions based on data for 125 countries in the period 1960–1992 confirm a statistically significant inverse relationship between the size of the primary sector and economic growth, but not between the volatility of the real exchange rate and growth.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Sarah Hall |
| Date Deposited: | 01 Dec 2020 18:32 |
| Last Modified: | 02 Aug 2023 18:06 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/41921 |
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