Do Sub-Saharan Countries in Africa Have the Dutch Disease?
- Samuel Barrows
The Sub-Saharan countries in Africa are evaluated to determine if conditions exists to cause some to develop the Dutch disease. Two groups are assembled from the study population: those with natural resources rents under 8% of GDP, and those over. Both groups show tendencies for higher resources rents than the baseline World readings. Both groups also experience decreases in both the agriculture and manufacturing sectors during the study period. In addition, both groups see increases in personal remittances received by the host countries. All of these are ingredients which signal potential Dutch disease. In addition to the two group comparisons, individual country assessments are conducted which identify 13 of the 49 countries, or 26.5%, as having conditions which would support the Dutch disease diagnosis. Measurements for the study are taken from the World Bank databank website and categorized into two sections, economic configuration and money flows, for further focus. The study includes discussions on natural resources development, globalization, institutions, the Dutch disease, remittances, and investments.
- Jenny ZhangEditorial Assistant