Diagnosing Dutch Disease
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Diagnosing Dutch Disease
Author | : Dan Ciuriak |
Publisher | : |
Total Pages | : 21 |
Release | : 2014 |
Genre | : |
ISBN | : |
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Dutch Disease emerged as a journalistic label that subsequently prompted theoretic treatments in various fields, including trade, growth and development, fiscal policy, monetary policy, industrial policy, and public policy management. The resulting body of theoretical and empirical work demonstrates that resources are not a curse per se but the challenges of managing windfall benefits are great. Because a positive diagnosis is an implicit criticism of public policy and puts vested interests at risk, Dutch Disease is a hot button issue everywhere and everywhen. By the same token, to sift through the arguments that are made in any specific context requires a formal framework that serves as a bulwark against partial and potentially tendentious analysis. In this paper, I suggest a thirteen-point template for diagnosing Dutch Disease, which importantly includes taking into account the lessons from modern firm-level trade theory and empirics.
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