Why Is ‘The Dutch Disease’ Always a Disease?* The Macroeconomic Consequences of Scaling Up ODA

Terry McKinley

Chapter 5 in Economic Alternatives for Growth, Employment and Poverty Reduction, 2009, pp 85-99 from Palgrave Macmillan

Abstract: Abstract Why do many economists believe that in developing countries a large surge of capital inflows, such as Official Development Assistance (ODA), will lead to a ‘Dutch Disease’, and not development? What, exactly, is a ‘Dutch Disease’ and why is it considered to be invariably detrimental to development?1 This brief paper attempts to address these issues.

Keywords: Central Bank; Foreign Exchange; Real Exchange Rate; Government Expenditure; Private Investment (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-25063-5_6

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DOI: 10.1057/9780230250635_6

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