Oil Stock Discovery And Dutch Disease

Kirk Hamilton and John Hartwick

No 1163, Working Paper from Economics Department, Queen's University

Abstract: We set out a model of a small open economy exporting oil and a traditional exportable in return for produced capital. The small open economy also has local production of a non-traded good. We first observe that the size of the traditional export sector declines with an exogenous increase in the country's oil stock. Strong Dutch disease(SDD) involves a net diminution in produced capital in use in the small open economy after the oil discovery shock. SDD turns on the exportable sector being relatively capital intensive.

Keywords: Dutch disease; resource discovery; invariant earnings (search for similar items in EconPapers)
JEL-codes: F43 Q32 Q33 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2008-03
New Economics Papers: this item is included in nep-ene and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Oil Stock Discovery And Dutch Disease (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1163

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