Oil Stock Discovery And Dutch Disease

Kirk Hamilton and John Hartwick

No 1220, Working Paper from Economics Department, Queen's University

Abstract: We set out a model of a two-good, small open economy exporting a traditional exportable in order to finance capital goods rental payments. We observe that thetraditional export sector declines with an exogenous increase in the country's oil export earnings, while the local goods sector expands. For input price effects to emerge, landis needed as a third input. For the "large land" case, we can have imports of capital steadily decline as oil earnings expand. Earnings from oil sales are stationary underour annuitization construction.

Keywords: Dutch disease; resource discovery; invariant earnings (search for similar items in EconPapers)
JEL-codes: F43 Q32 Q33 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2009-11
New Economics Papers: this item is included in nep-ene and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1220.pdf First version 2009 (application/pdf)

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Working Paper: Oil Stock Discovery And Dutch Disease (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1220

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