Analysis of ‘Dutch Disease Effects’ on Asian Economies

This chapter addresses the issue of the Dutch Disease in relationship with capital inflows through exporting natural resources, accepting foreign aids and emigrant remittances. The analysis focuses on Asian economies that are expected to sustain their growth and adopts a vector auto‐regression model with Granger causality and impulse response tests. The main findings are as follows. Firstly, from the perspective of natural‐resource abundance in Asian economies, the Dutch Disease was identified for 1980–1995, but not for 1995–2014, probably because of their institutional improvements. Secondly,... Mehr ...