Details

Autor(en) / Beteiligte

• Corden, W. Max
• Neary, J. Peter

Titel

Booming Sector and De-Industrialisation in a Small Open Economy

Ist Teil von

• The Economic journal (London), 1982-12, Vol.92 (368), p.825-848

Ort / Verlag

Cambridge: Cambridge University Press

Erscheinungsjahr

1982

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• An analysis of several aspects of structural change in an open economy is undertaken, focusing particularly on the increasingly prevalent ''Dutch Disease,'' i.e., the coexistence within the traded-goods sector of gaining and declining subsectors. Such conditions are currently being experienced in the UK, the Netherlands, and some members of the Organization of Petroleum Exporting Countries (OPEC). In these countries, the booming sector is extractive industries, while the traditional manufacturing sector is under pressure. The resulting pressures towards deindustrialization are examined here. The analysis is concerned primarily with the medium-term effects of symmetric growth on resource allocation and income distribution. A central feature is the distinction between resource movement effect and spending effect. It is also relevant for economies where technologically more advanced activities than resource extraction are replacing older industry. This framework successfully extends the standard tools of international trade theory to consider sectoral boom.