| Title: |
Boom goes the price:giant resource discoveries and real exchange rate appreciation |
| Authors: |
Harding, Torfinn; Stefanski, Radoslaw; Toews, Gerhard |
| Source: |
Harding , T , Stefanski , R & Toews , G 2020 , ' Boom goes the price : giant resource discoveries and real exchange rate appreciation ' , The Economic Journal , vol. 130 , no. 630 , pp. 1715-1728 . https://doi.org/10.1093/ej/ueaa016 |
| Publication Year: |
2020 |
| Subject Terms: |
Real exchange rates; Natural resource discoveries; Dutch disease; Oil; Balassa-Samuelson effect |
| Description: |
We estimate the effect of giant oil and gas discoveries on bilateral real exchange rates. A giant discovery with the value of 10% of a country's GDP appreciates the real exchange rate by 1.5% within 10 years following the discovery. The appreciation starts before production starts and the non-traded component of the real exchange rate drives the appreciation. Labor reallocates from the traded goods sector to the non-traded goods sector, leading to changes in labor productivity. These findings provide direct evidence on the channels central to the theories of the Dutch disease and the Balassa-Samuelson effect. |
| Document Type: |
article in journal/newspaper |
| File Description: |
application/pdf |
| Language: |
English |
| DOI: |
10.1093/ej/ueaa016 |
| Availability: |
https://research-portal.st-andrews.ac.uk/en/publications/451a2be5-f691-4087-a1ad-f69eb69e6a01; https://doi.org/10.1093/ej/ueaa016; https://research-repository.st-andrews.ac.uk/bitstream/10023/20503/1/Harding_2020_EJ_Boom_CC.pdf |
| Rights: |
info:eu-repo/semantics/openAccess |
| Accession Number: |
edsbas.A85EBC37 |
| Database: |
BASE |