Test the Hypothesis of Dutch Disease in the Bolivian economy

Sergio Cerezo Aguirre ()
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Sergio Cerezo Aguirre: SEBOL menber and professor at the Bolivian Catholic University

Revista Latinoamericana de Desarrollo Economico, 2014, issue 21, 93-116

Abstract: In recent years, Bolivia has experienced a strong inflow of foreign currency due in part to a sharp rise in prices of natural resources exports; an element with the real appreciation has created concern about whether the economy is experiencing the Disease Dutch (DD). This document based on conditions Oomes and Kalcheva (2007) for them (real appreciation, slower growth in manufacturing, rapid growth of services and higher wages), finds no empirical evidence on this phenomenon. In particular, an overvalued exchange rate is seen or a persistent misalignment of the real exchange rate, de-industrialization and manufacturing. The evolution of the services sector and their prices and real wages do not respond to the dynamics of the industry boom. However, the document considers that the presence of this phenomenon deserves close scrutiny.

Keywords: Dutch Disease; Macroeconomy. (search for similar items in EconPapers)
JEL-codes: E20 O13 (search for similar items in EconPapers)
Date: 2014
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