Dutch Disease in Post-Soviet Oil Exporting Countries: Impact of Real Appreciation on De-industrialization

2018 ◽  
Vol 1 (3-4) ◽  
pp. 199-219 ◽  
Author(s):  
Kwansik Yun
Keyword(s):  
Dutch Disease ◽  
Real Appreciation

scholarly journals Dutch Disease – Ökonomische Prozesse und Implikationen für die Entwicklungszusammenarbeit

2012 ◽  
Vol 63 (3) ◽  
Author(s):  
Klaus Liebig ◽  
Gerhard Ressel ◽  
Ulrike Rondorf
Keyword(s):  
Side Effects ◽  
Central Bank ◽  
Dutch Disease ◽  
Crowding Out ◽  
Balance Sheets ◽  
Aggregate Output ◽  
Nontradable Goods ◽  
The Government ◽  
Real Appreciation

SummaryWe analyze some potential adverse macroeconomic side-effects of aid transfers: Real appreciation of the recipient′s currency may impair the aggregate output via crowding-out productive export sectors, the so-called Dutch Disease.We use simplified balance sheets to elucidate the effects of four typical combinations of the following actions: The government may or may not spend the value of the aid transfer for nontradable goods. The central bank may or may not sell the respective reserves.If the loss of competitiveness induced by the appreciation is over-compensated by the improved productivity induced by the use of the transfer, then there is no need to worry about the Dutch Disease.

Crisis Reactions and Their Consequences for the Real Sector of the Russian Economy

2011 ◽  
pp. 39-50
Author(s):  
V. Lushin
Keyword(s):  
Financial Crisis ◽  
Acute Phase ◽  
Dutch Disease ◽  
Added Value ◽  
Real Sector ◽  
The Real ◽  
Balanced Development ◽  
Russian Economy ◽  
The Government ◽  
State Modernization

The author analyzes factors that led to a deeper fall in output and profitability in the real sector of the Russian economy in comparison with other segments during the acute phase of the financial crisis. It is argued that some contradictions in the government anti-recession policy, activities of the financial sector and natural monopolies lead to pumping out added value created in manufacturing and agriculture, increase symptoms of the «Dutch disease», etc. It is shown that it may threaten the balanced development of the Russian economy, and a set of measures is suggested to minimize these tendencies and create a basis for the state modernization policy.

EVALUATION OF THE STATE OF ILMOVS AND THE FEATURES OF THEIR HANDS IN GREEN PLANTS OF THE GENERAL USES OF ST. PETERSBURG

2020 ◽  
Author(s):  
Михаил Юрьевич Лазебный ◽  
Ирина Дмитриевна Самсонова
Keyword(s):  
The State ◽  
Dutch Disease ◽  
Green Spaces ◽  
Green Plants

В настоящее время вязы, пораженные голландской болезнью, выявлены во всех 18 районах Санкт-Петербурга. Проведена оценка состояния ильмовых в зеленых насаждениях общего пользования, выявлена роль факторов их усыхания и проанализированы мероприятия по уходу за ними. Currently, elms affected by the Dutch disease have been identified in all 18 districts of St. Petersburg. The state of elm trees in public green spaces was assessed, the role of their drying factors was revealed, and measures to care for them were analyzed.

Has the Sovereign Wealth Fund of Azerbaijan (SOFAZ) Been Able to Promote Economic Diversification?

2013 ◽  
Author(s):  
Vahid Yücesoy
Keyword(s):  
Fossil Fuels ◽  
Dutch Disease ◽  
Future Generations ◽  
Direct Control ◽  
Economic Diversification ◽  
Sovereign Wealth Funds ◽  
Sovereign Wealth Fund ◽  
Rentier States ◽  
Oil Revenues ◽  
Rich Countries

Oil-rich countries have oftentimes been confronted with the challenge of diversifying their economies away from oil dependence given the exhaustible nature of these fossil fuels. Investing in sovereign wealth funds has been one of the most ubiquitous ways of preparing for the post-oil period. Investing in sovereign wealth funds rather than directly injecting the oil revenues in the economy not only precludes the outbreak of the Dutch Disease (which is known for giving rise to an exchange rate appreciation, crowding out non-oil industries and keeping the economy reliant on oil), but it also saves for future generations. Yet, in the case of Azerbaijan, the Sovereign Wealth Fund of Azerbaijan (SOFAZ), founded in 1999, has only increased this reliance on oil. Using the rentier states theoretical framework, this paper will argue that the direct control over SOFAZ exercised by the president and the lack of consultation with the NGOs have made corruption easier, making the task of economic diversification more difficult. This has been possible because through corruption the president has often resorted to oil money to buy peace rather than invest it in economic diversification. As a result, since the foundation of SOFAZ, the country is more reliant, not less, on oil.   Full text available at: https://doi.org/10.22215/rera.v8i1.223  

Conclusion

2017 ◽  
Author(s):  
Jonathon W. Moses ◽  
Bjørn Letnes
Keyword(s):  
Natural Resources ◽  
Resource Curse ◽  
Specific Model ◽  
Dutch Disease ◽  
Political Conditions

There is broad recognition that Norway manages its natural resources successfully. Policymakers are flocking to Norway to try to learn the lessons provided by the Norwegian model. This book describes the main challenges facing policymakers in resource-rich states (e.g., Dutch Disease, Resource Curse, Paradox of Plenty), and the sort of institutional solutions and policies that are available to them. We explain why the Norwegian authorities chose the solutions they did, and how these choices have changed over the years, in response to changing market and political conditions. The result is a book that offers insight and understanding as to why the country made the choices it did, rather than providing a specific model for export.

Macroeconomic Balance

2017 ◽  
Author(s):  
Jonathon W. Moses ◽  
Bjørn Letnes
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
International Competitiveness ◽  
Local Economy ◽  
Dutch Disease ◽  
Economic Sectors ◽  
Incomes Policy ◽  
Subsequent Loss ◽  
Resource Wealth

One of the biggest challenges from petroleum wealth comes from a subsequent loss of international competitiveness. Resource wealth can easily inflate the local economy, making it more difficult for other economic sectors to maintain international competitiveness. This chapter introduces the challenge of Dutch Disease and its diverse remedies. The latter part of the chapter describes how Norway has always struggled with the need to maintain international competitiveness, and has developed a highly organized economy (corporatism) as a result. Norwegian incomes policy, responsible budgeting policies, devaluations, and a restricted pace of extraction have all been used, at various times, to limit the threat of a real exchange rate appreciation.

Australia—The Hidden Jewel

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Natural Resources ◽  
Value Chain ◽  
Global Economy ◽  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease

The twenty-first century is being touted as the Asian century. With its stable economy, good governance, education system, and above all the abundant natural resources, will Australia to take its place in the global economy by becoming more entrepreneurial and accelerating its rate of growth, or will it get infected with the so-called Dutch disease? It has been successful in managing trade ties with fast-developing economies like China and India as well as developed countries like the United States. It has participated in the growth of China by providing iron ore and coal. Because it is a low-risk country, it has enabled inflow of large foreign capital investments. A lot will depend on its capability and willingness to invest the capital available in entrepreneurial ventures, its ability to capture the full value chain of natural resources, and to export the finished products instead of raw materials, while building a robust manufacturing sector.

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