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About Warr Gregory Thesis
This document discusses the potential macroeconomic effects of large infrastructure projects in small economies, known as the "Gregory effect" or "Dutch disease". It focuses on a major hydropower project in Laos called Nam Theun 2. The project will see large foreign investment and export earnings, but there is a risk this will appreciate the real exchange rate and negatively impact other traded sectors. The analysis uses a production possibility frontier model to show how the project could expand the non-traded sector and contract export-oriented and import-competing industries. This contraction of non-booming sectors may harm those who work in them.
Detailed Information
| Author: | ['Christian Sanguinetti'] |
|---|---|
| Publication Year: | 2018 |
| Pages: | 48 |
| Language: | English |
| Format: | |
| Price: | FREE |
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