Analysis of the ‘Dutch Disease’ Effect on the Selected Resource-Rich ASEAN Economies

Hiroyuki Taguchi and Soukvisan Khinsamone
Authors registered in the RePEc Author Service: Hiroyuki Taguchi ()

Asia and the Pacific Policy Studies from Crawford School of Public Policy, The Australian National University

Abstract: This article examines the applicability of the Dutch Disease hypothesis by using a vector auto†regression model, focusing on the resource†rich and middle†income economies in the Association of Southeast Asian Nations. The empirical study found that the latecomers of Lao People's Democratic Republic and Myanmar seemed to suffer from the Dutch Disease over the sample period for 1970–2015; and the forerunners of Indonesia and Malaysia, on the other hand, appeared to have no Dutch Disease effect at least in the current period of 1997–2015, although Indonesia had experienced the Dutch Disease in the previous period of 1970–1996. The lessons from the forerunners' experiences in order for the latecomers to escape from the Dutch Disease are to establish some funding system of allocating resource revenues for investment projects; to diversify domestic industries through improving business environments; and to improve institutional quality to reinforce resource governance.

Keywords: Dutch Disease; ASEAN; vector auto-regression model; natural resources; resource fund (search for similar items in EconPapers)
Pages: 15 pages
Date: 2018-05-21
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (3)

Published in Asia & the Pacific Policy Studies, May 2018, pages 249-263

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Persistent link: https://EconPapers.repec.org/RePEc:een:appswp:201819

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