Manufacturing Sector Resiliency to Energy Booms: Empirical Evidence from Norway, the Netherlands and the United Kingdom

68 Pages Posted: 13 Dec 2005

See all articles by Michael M. Hutchison

Michael M. Hutchison

University of California, Santa Cruz - Department of Economics

Date Written: September 1990

Abstract

A natural resource based export boom can increase overall national wealth and improve a country's balance of payments position, but leave some sectors in a protracted and costly adjustment process. This phenomenon is known as "Dutch disease", a term associated with the difficulties experienced by the Dutch manufacturing sector after the natural gas boom, hike in world energy prices and expansion of the gas-revenue financed government sector expansion in the Netherlands. This paper reviews the theoretical predictions of a country experiencing a resource boom. It then briefly describes the country experiences of the Netherlands, Norway and the United Kingdom in this regard and finally develops a methodology for a more formal statistical analysis designed to shed light on the relationships between the energy sector and manufacturers in these countries, as well as to identify other potential explanatory factors.

Suggested Citation

Hutchison, Michael M., Manufacturing Sector Resiliency to Energy Booms: Empirical Evidence from Norway, the Netherlands and the United Kingdom (September 1990). BIS Working Paper No. 13, Available at SSRN: https://ssrn.com/abstract=868575 or http://dx.doi.org/10.2139/ssrn.868575

Michael M. Hutchison (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Social Sciences I
Santa Cruz, CA 95064
United States
831-459-2600 (Phone)
831-459-5900 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
119
Abstract Views
1,495
Rank
422,206
PlumX Metrics