Bolivia and the Dutch Disease: What are the risks and how to avoid them?

Fracois-Xavier de Mevius and Iván Albarracín
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Fracois-Xavier de Mevius: IISEC-UCB
Iván Albarracín: IISEC-UCB

Revista Latinoamericana de Desarrollo Economico, 2009, issue 11, 101-145

Abstract: Since the beginning of the 19th century, the Bolivian economy has always been highly dependant on its natural resource production, and therefore has always been quite vulnerable to external shocks, The paper analyse if the boom in the gas sector happened in the last years would be able to the "Dutch Disease" and describe the possible politics that would be applied of it is evidenced. Realizing an analysis of the main macroeconomics indexs and exploring the evolution of the differents economics sectors involved, evidence is found that Bolivia was not facing a Full blown Dutch Disease but is probably that in the future will face the symptoms of the Dutch Disease.

Keywords: Bolivia; Dutch Disease; Natural Resource; gas (search for similar items in EconPapers)
JEL-codes: Z00 (search for similar items in EconPapers)
Date: 2009
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