Money windfalls and oil-exporting developing countries: a comparative study of Algeria, Ecuador, trinidad and Tobago, and Indonesia

Thesis/Dissertation · Wed Jan 01 04:00:00 EST 1986

OSTI ID:6823766

Avin, R M

This thesis analyzes how the oil windfalls of the 1970s have affected the growth path and the sectoral composition of output and trade of the oil rich developing countries. The policy makers of the four subject countries have adopted different development strategies so that their economies can achieve sustained increases in per capita income and a higher level of economic development after the resource is depleted. The analysis is concerned with the consequences of these policies. The neoclassical models used in the literature to analyze the effects of a resource boom predict the following consequences among others: (1) increase in the prices of nontraded goods, which include construction and services; (2) appreciation of the real exchange rate, which is defined as the ratio of the price of nontraded goods to the price of traded goods, and (3) fall in the output and employment of the traditional traded goods sector, not including the resource or booming sector. The consequences are known as the Dutch Disease in reference to a decline in Dutch manufacturing in the 1960s brought about by natural gas discoveries. To test the hypotheses of the trade and development models, national accounts data are used in order to measure the changes in the composition of production and trade in the 1970s and early 1980s.

• Research Organization: Maryland Univ., College Park (USA)
• OSTI ID: 6823766
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
AFRICA
ALGERIA
ASIA
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
ECUADOR
INDONESIA
INDUSTRY
ISLANDS
LATIN AMERICA
LESSER ANTILLES
OIL-EXPORTING COUNTRIES
PETROLEUM INDUSTRY
SOUTH AMERICA
TRADE
TRINIDAD AND TOBAGO
WEST INDIES