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Services, inequality, and the dutch disease (English)

This paper shows how Dutch disease effects may arise solely from a shift in demand following a natural resource discovery. The natural resource wealth increases the demand for non-tradable luxury services due to non-homothetic preferences. Labor that could be used to develop other non-resource tradable sectors is pulled into these service sectors. As a result, manufactures and other tradable goods are more likely to be imported, and learning and productivity...
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Battaile,William G.; Chisik,Richard Asher; Onder,Harun.

Services, inequality, and the dutch disease (English). Policy Research working paper ; no. WPS 6966 Washington, DC: World Bank Group. http://documents.worldbank.org/curated/en/373401468323696444

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