The Dutch Disease and the Diversification of an Economy: Some Case Studies.

Bature, Bitrus Nakah

doi:10.9790/0837-1550614

Cited by 8 publications

(8 citation statements)

References 23 publications

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“…The Hartwick’s Rule by Professor John Martin Hartwick, in 1976 suggested that sustainability can be achieved by reinvesting rent from exhaustible capital or non-renewable environmental resources to produce artificial capital, thereby making net investment zero [ 31 ]. In other words, when the state invests revenue earned on exhaustible resources, at a point in time, it should be done to create produced capital, both tangible and intangible, to secure the future [ 52 ]. Hartwick advocated for sustainability by ensuring the irreplaceable capital exploited from the environment at the current time is efficiently used such that generations to come will continue to depend on its remaining deposit.…”

Section: Introductionmentioning

confidence: 99%

Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries

Ologunde

Kapingura

Sibanda

2020

IJERPH

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This study investigated the relationship between sustainable development and crude oil revenue (COR) in selected oil-producing African countries from 1992–2017 using the Pooled Mean Group (PMG) estimators on panel autoregressive distributed lag model (ARDL). Sustainable development was measured with the Human Development Index (HDI). This study was significant for Africa to break away from fiscal over-dependence on natural resource revenue, especially crude oil due to its high volatility and to correct porous institutional outlook. The a priori expectation is that crude oil revenue will tank so much that many countries will record negative positions and might not be to meet fiscal demands in the long run if the situation is protracted. Empirical results revealed that there was no long-term relationship between COR and sustainable development. In other words, the results suggest that any changes to COR have a potential negative effect on sustainable development in the selected countries. This implies over-reliance on COR will impact the economies negatively in the long run. This finding, therefore, requires an immediate fiscal intervention on spending on sustainable development drivers such as education, health, agriculture cum adoption diversification policy, and veritable supply-side policies that could avert the possibility of these negative effects and to correct traits of ineffective public institution. The absence of such policy interventions in these countries seems to be related to ineffective public institution and bad governance, culminating from poor, ineffective, and inefficient implementation.

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Section: Introductionmentioning

confidence: 99%

Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries

Ologunde

Kapingura

Sibanda

2020

IJERPH

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“…Indonesia retains several labor-intensive manufacturing products that are competitive in the world market. This accrues to the relatively low real appreciation, smaller natural resource endowment per capita, less complementary with Chinese import specification except of coal (Garnaut 2015), and use of resource rent to invest in agricultural development (Bature 2013) for the purpose of self-sufficiency for paddy rice and tight fiscal control. Sufficient domestic rice production helps stabilize food price, preventing labor cost from becoming too high for manufacturing sector to be competitive, like in Africa.…”

Section: Discussionmentioning

confidence: 99%

Impact of the resource boom in the 2000s on Asian-Pacific energy-exporting countries

Mori¹,

Dong²

2018

China’s Climate-Energy Policy

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Resource booms generate the Dutch disease and increases vulnerability to resource price shock in resource-dependent countries. This chapter analyzes whether both the global resource boom in 2003-08 and China-induced boom in 2009-13 caused these effects in the Asian-Pacific region. It considers the three coal and gas exporters of Australia, Indonesia and Kazakhstan, the two natural gas exporters of Myanmar and Turkmenistan, and the coal exporter of Mongolia, employing a trade specialization coefficient (TSC) and a relative comparative analysis (RCA) to analyze the impact on export competitiveness by industries. Results reveal that all the six countries suffer from the real appreciation and the Dutch disease, face stronger export specification in resource extraction sectors and low value-added primary and industrial sectors, and exhibit an increasing trade dependency on China ---all of which make them more vulnerable to resource price shocks. The extent, however, depends on the type of fuel for export, resource dependency in its export, its initial industrial structure, international competitiveness, macroeconomic management, and resource governance.China has acquired assets, resources and infrastructure in exchange for reducing its trade deficit, providing little, if any, effective counter measures to allow them to escape from the Dutch disease.

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“…This led to several studies investigating the existence and extent of the Dutch disease in oil-producing countries with the aim of mitigating or managing the "disease" (e.g. Bature, 2013;Mironov, Petronevich, 2015). Beyond the Dutch disease, scholars were also interested in investigating the various ways through which oil price increase or decrease affect economic growth in oil producing countries and non--oil producing countries alike.…”

Section: Introductionmentioning

confidence: 99%

Does Oil Rent Increase Happiness? A Partial Efficiency Analysis of Selected African Countries

Opaleye

Nwachukwu

2019

Trends Economics and Management

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Purpose of the article: To investigate and ascertain the impact of oil rent on happiness in selected African countries. Methodology/methods: This study employed the trend analysis to graphically illustrate some major data. It also employed the fixed effect to analyse the model and the partial efficiency analysis to rank the countries studied in terms of their efficiency in the use of oil rent to produce happiness. Scientific aim: This study examines the relationship between oil rent, the oil price, the GDP growth, the mineral rent and happiness. Findings: The results show that oil rent does not significantly increase happiness in the countries studied with Cameroun being the happiest country in the panel. Oil prices however significantly increased happiness. The study also found that the economic growth reduces happiness. Conclusions: The study provides evidence that the economic growth alone does not lead to happiness in the country if citizens are not employed and the rate of inflation continues to spiral upward. The study thus concludes that the economic growth must be inclusive in nature through government use of rents to invest in sectors that create value additions and job opportunities for citizens. The study also recommends the setting of the social safety net, as well as ensuring that inflation is properly managed.

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The Dutch Disease and the Diversification of an Economy: Some Case Studies.

Cited by 8 publications

References 23 publications

Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries

Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries

Impact of the resource boom in the 2000s on Asian-Pacific energy-exporting countries

Does Oil Rent Increase Happiness? A Partial Efficiency Analysis of Selected African Countries

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