
handle: 10419/67813 , 10419/67783
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.
invariant earnings, Q32, dutch disease, ddc:330, Q33, Exportindustrie, Erdölförderung, Erdölvorkommen, Dutch Disease, Kleines-offenes-Land, F43, Dutch disease, resource discovery, invariant earnings, Einkommen, resource discovery, jel: jel:F43, jel: jel:Q33, jel: jel:Q32
invariant earnings, Q32, dutch disease, ddc:330, Q33, Exportindustrie, Erdölförderung, Erdölvorkommen, Dutch Disease, Kleines-offenes-Land, F43, Dutch disease, resource discovery, invariant earnings, Einkommen, resource discovery, jel: jel:F43, jel: jel:Q33, jel: jel:Q32
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