A Mixed Blessing: Natural Resources and Economic Growth
CEPR WP 1668
Posted: 10 Jan 1998
Date Written: 1997
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.
JEL Classification: O41, Q32
Suggested Citation: Suggested Citation