TY - BOOK ID - 84541030 TI - The Structural Manifestation of the ‘Dutch Disease’ : The Case of Oil Exporting Countries PY - 2010 SN - 1462331521 1455286877 1283561573 9786613874023 145523429X PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Petroleum industry and trade--Econometric models. KW - International trade--Econometric models. KW - Petroleum products--Prices--Econometric models. KW - Finance: General KW - Macroeconomics KW - Economic Theory KW - Industries: Manufacturing KW - Resource Booms KW - Energy: Demand and Supply KW - Prices KW - General Financial Markets: General (includes Measurement and Data) KW - Industry Studies: Manufacturing: General KW - Labor Economics: General KW - Economic theory & philosophy KW - Finance KW - Manufacturing industries KW - Labour KW - income economics KW - Dutch disease KW - Oil prices KW - Capital markets KW - Manufacturing KW - Labor KW - Economic forecasting KW - Capital market KW - Labor economics KW - Netherlands, The KW - Petroleum industry and trade. KW - International trade KW - Petroleum products KW - Econometric models. KW - Prices. KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541030 AB - This study derives structural implications of the Dutch disease in oil-exporting countries due to permanent oil price shocks from a typical model. We then test these implications in manufacturing sector data across a wide group of countries including oil-exporters covering 1977 to 2004. The results on oil-exporting countries are four folds. First, we find that permanent increases in oil price negatively impact output in manufacturing as consistent with the Dutch disease. Second, Evidence in the data shows that oil windfall shocks have a stronger impact on manufacturing sectors in countries with more open capital markets to foreign investment. Third, we find that the relative factor price of labor to capital, and capital intensity in manufacturing sectors appreciate as windfall increases. Fourth, we find that manufacturing sectors with higher capital intensity are less affected by windfall shocks than their peers, possibly due to a larger share of the effect being absorbed by more laborintensive tradable sectors. An implication of the fourth result is that having diverse manufacturing sectors in capital intensity helps cushion the volatility of oil shocks. ER -