Dutch Diseas and the crime epidemic: an investigation of the mineral boom in Papua New Guinea

Satish Chand and Theodore Levantis

Australian Journal of Agricultural and Resource Economics, 2000, vol. 44, issue 01, 18

Abstract: Papua New Guinea has pinned its hopes for economic development on its mineral wealth but, so far, this has been a false promise. Given Papua New Guinea’s vulnerability, this raises questions of a Dutch Disease effect. Dutch Disease is dismissed in principle, but an appreciating real exchange rate is considered to have important offsetting economic consequences via its implications for crime. Using a CGE model incorporating crime as an economic activity, the contribution to welfare of a resources boom is investigated. The results confirm that a resources boom will deliver a net welfare benefit, but far smaller than the revenues generated would suggest, and at a cost to equity.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:117793

DOI: 10.22004/ag.econ.117793

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