Do international remittances cause Dutch disease?

Beja, Edsel Jr. (2010): Do international remittances cause Dutch disease?

Abstract

Dutch disease is a condition whereby a booming export sector along with a concomitant strengthening of the non-tradable sector cause a deterioration in the rest of the tradable sector. Regression analysis finds that Dutch disease due to international remittances appears to afflict the developing countries more than the upper income countries. Developing countries, however, can inoculate their economies with policies that strengthen the domestic economy and facilitate structural change to keep the disease from setting in.

• Item Type: MPRA Paper
• Language: English
• Keywords: Dutch disease; international remittances
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O25 - Industrial Policy; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A20 - General; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F59 - Other; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F2 - International Factor Movements and International Business > F20 - General; F - International Economics > F1 - Trade > F10 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes; L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy ; Sectoral Planning Methods; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances

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