Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67813
Authors: 
Hamilton, Kirk
Hartwick, John
Year of Publication: 
2008
Series/Report no.: 
Queen's Economics Department Working Paper 1163
Abstract: 
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.
Subjects: 
dutch disease
resource discovery
invariant earnings
JEL: 
F43
Q32
Q33
Document Type: 
Working Paper

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