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Resource Income and the Effect on Domestic Neighbours: A case study on Canadian
Vermeulen, Wessel
2013
 

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Keywords :
Dutch Disease; interregional and international trade
Abstract :
[en] Resource income in a multi-regional setting allows for differentiated impacts of windfalls on the industrial development of each region. A resource exporting region suffers from Dutch disease through a spending effect and a real exchange rate ap- preciation. Whereas, a neighboring region will suffer from the real exchange rate appreciation but the increased demand from the region with the resource income of tradable goods will increase the traded good sector in the neighboring region. For a 2-region 2-sector model the equilibrium conditions on the labour allocation between the sectors are derived taking into account resource potential windfalls. The model is tested on and supported by a panel dataset of Canadian provinces.
Disciplines :
Macroeconomics & monetary economics
Author, co-author :
Vermeulen, Wessel ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Language :
English
Title :
Resource Income and the Effect on Domestic Neighbours: A case study on Canadian
Publication date :
2013
Available on ORBilu :
since 23 January 2014

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