Chowdhury addresses fundamental issues of policy management in resource-based developing countries, by providing an extension of the existing 'Dutch Disease' theory and its applications to the developing country context. The impact of resources booms is of paramount importance for the developing economies. To date the analytical and empirical investigations of these issues have not been available. Essentially, this study will fill this gap. The book investigates the macroeconomic impact of a resources boom and the long-term growth implications of related policy choices with reference to Papua New Guinea. Like many other primary commodity exporting developing economies, Papua New Guinea experienced several short-lived export booms over the past two and a half decades, providing a fascinating case study of potential gains from resources booms and the accompanying complex problems of policy management. This study also incorporates a comparative study of resources boom and policy management issues between Papua New Guinea, Indonesia and Nigeria.
Contents: Introduction; Resources boom and macroeconomic adjustment: a survey; An overview of the Papua New Guinea economy; Determinants of real exchange rate in Papua New Guinea; Determinants of sectoral output, savings and investment in Papua New Guinea; Impact of major resources booms in Papua New Guinea; A comparative study of resources booms in Papua New Guinea, Indonesia and Nigeria; Conclusion; Statistical appendix: supplementary statistical tables, notes and basic data; Appendices; Bibliography; Index.