The Structural Manifestation of the 'Dutch Disease’: The Case of Oil Exporting Countries

Ismail, Kareem

doi:10.2139/ssrn.1594548

Cited by 33 publications

(22 citation statements)

References 22 publications

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“…Such rents then can fund civil servants and urban services, as well generate demand for urban private services. Also one may draw a connection between natural resources rents and low manufacturing, based on the argument that revenues from natural resource exports affect exchange rates and wage costs, crowding out manufacturing and its technological spillover benefits (Sachs and Warner 2001;Ismail 2010;Alcott and Keniston 2017). Henderson and Kriticos (2018) re-examine the consumer city argument.…”

Section: What Is Driving Developing Country Urbanization?mentioning

confidence: 99%

Urbanization in the Developing World: Too Early or Too Slow?

Henderson¹,

Turner²

2020

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We describe patterns of urbanization in the developing world and the extent to which they differ from the developed world. We consider the extent to which urbanization in the developing world can be explained by conventional models of spatial equilibrium. Despite their relative poverty, developing world cities are relatively highly productive, and often provide good access to safe water, improved sanitation, schooling and inoculations. In some parts of the world, they are home to a surprisingly small number of factory workers and a surprisingly large number of farmers. Developing world cities seem to do less well at protecting their residents from lifestyle diseases and crime, their female residents from domestic violence and their children from illness. In thinking about these facts, we note that one strand of the literature focused on structural transformation has suggested that urbanization in the developing is occurring `too early', while another strand argues that urbanization is occurring `too slow' to be consistent with conventional models of spatial equilibrium. Despite many differences between developing and developed world cities, our new results combined with those in the literature suggest that models of spatial equilibrium can be adapted to be a useful guide to understanding the process of urbanization in the developing world.

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Section: What Is Driving Developing Country Urbanization?mentioning

confidence: 99%

Urbanization in the Developing World: Too Early or Too Slow?

Henderson¹,

Turner²

2020

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“…5 Using cross-country data, Sachs and Warner (2001) find that natural resource abundance harms growth. Ismail (2010) find that natural resource exports negatively affect manufacturing exports in a cross-country analysis.…”

Section: Introductionmentioning

confidence: 83%

Oil prices and fiscal policy in an oil-exporter country: Empirical evidence from Oman

2022

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“…Different authors have assumed different technologies; for instance, Krugman (1988) postulates linear technologies in both sectors, Dornbusch (1989) assumes linear (or Leontief) technology in the production of nontradable goods, De Gregorio and Wolf (1994), García (1999) and Lartey (2008) propose linear technology in the non-tradable sector, but Cobb-Douglas in the tradable sector, Asea and Corden (1994), Asea and Mendoza (1994), Alberola (2003), Rodrik (2006), Galstyan and Lane (2009), Soto and Elbadawi (2008), Ismail (2010), García-Cicco and Kawamura (2015) and Mejalenko (2015) are based on Cobb-Douglas technologies in both sectors, Calderon (2002) and Aguirre and Calderon (2005) assume linear technologies in the non-tradable sector, but endowed tradable goods and Razmi et al (2009) postulate Leontief technologies in the tradable sector, but Cobb-Douglas in the non-tradable sector. Devarajan et al (1991) go further assuming a transformation curve between tradable and non-tradable goods with CES structure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…When distinction between exportable and importable goods is made they are not always assumed to be domestically consumed or produced, respectively. For instance, Dornbusch (1989), Devarajan et al (1991), De Gregorio and Wolf (1994), Devarajan (1999), Cerda (2001), Ismail (2010), García-Cicco and Kawamura (2015) and Schmitt-Grohé and Uribe (2021) consider exportable goods as domestically produced (consumed) but not consumed (produced), Soto and Elbadawi (2008) and Mejalenko (2015) allow exportable goods to be domestically consumed; Fardmanesh (1990) allows both domestically produced and imported manufactured goods.…”

Section: Introductionmentioning

confidence: 99%

An exploration of the interdependencies betweeenthe real exchange rate andthe size ofthe tradable sector ina small open economy

Valdivia¹,

Pentecost²

2022

Cecon

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The complex interdependences between the real exchange rates and the size of the tradable goods sector have not been fully explored in the existing literature. This article aims to full this gap by developing a neo-classical Australian general equilibrium model to further explore these linkages and to explain the impact of total factor productivity, factor endowments, terms of trade and debt services (net of transfers and/or aid flows) on the equilibrium real exchange rate and the size of the tradable sector. Measuring changes in the allocation of resources by changes in the share of tradable goods in GDP, we show that in addition to the well-known spending and resource movement effects, that there are four further separately identifiable effects, which we refer to as the extraordinary profit effect, the traded price effect, the expenditure movement effect and the debt substitution effect. The relative strengths of these additional effects help to determine the size of the tradable goods sector and hence the economic structure of a small open economy.Keywords: Structural real exchange rates; tradable goods share in GDP; productivity; terms of trade; resource movement effect; spending effect; extraordinary profits effect; traded price effect; debt substitution effect and expenditure movement effect Una exploración de las interdependencias entre el tipo de cambio real y el tamaño del sector transable en una pequeña economía abiertaResumen: A pesar de su importancia y complejidad, la interdependencia entre el tipo de cambio real y el tamaño del sector transable no ha sido estudiada en detalle por la literatura existente. Este artículo busca cubrir dichas deficiencias elaborando un modelo

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The Structural Manifestation of the 'Dutch Disease’: The Case of Oil Exporting Countries

Cited by 33 publications

References 22 publications

Urbanization in the Developing World: Too Early or Too Slow?

Urbanization in the Developing World: Too Early or Too Slow?

Oil prices and fiscal policy in an oil-exporter country: Empirical evidence from Oman

An exploration of the interdependencies betweeenthe real exchange rate andthe size ofthe tradable sector ina small open economy

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