Dutch disease is a concept that describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors. It is also often characterized by a substantial appreciation of the domestic currency.
Dutch disease is the economic symptoms resulting from decreasing the price competitiveness of exports of the manufactured goods which leads to increasing imports because of the higher local currency. Therefore, this can lead to unemployment and other bad consequences at the long run.
1- Jeroen Kremers, “The Dutch Disease in The Netherlands,” in Peter Neary and Sweder Van Wijnbergen, Ed., Natural Resources and the Macroeconomy, Cambridge: The MIT Press, 1986, pp. 97-101.
2- Dutch Disease and the Resource Curse: Final Effects for Newfoundland & Labrador Kimble F. Ainslie, president, Nordex ResearchTM, London, ON1
- Badges
- Science topic
- Similar topics
- Physical Sciences
- Energy