Resources Booms and Macroeconomic Adjustments in Developing Countries

Preface

This book investigates the impact of resources booms on the process of economic adjustment in developing countries. Changes in key macroeconomic variables induced by resources booms, including the real exchange rate, savings and investment, have significant consequences for the performance and structure of an economy. This book contributes to the analytical and empirical research on these issues through an in-depth case study of the economy of Papua New Guinea (PNG) during the period 1970–94. The theoretical framework of the study incorporates an extended version of the core model of ‘Dutch disease’ and the theory of ‘construction boom’. In order to place the policy implication of findings in perspective, PNG’s policy responses to booms ...