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Iurii Korobeinikov: Dutch disease and Venezuelan economics in retrospective
economic growth. Recent work of Berry (2008: 148-174) focuses on comparison of the
economics’ management practices employed to deal with extra incomes from resource sectors in
various countries including Venezuela. Present study contains original retrospective analysis,
based on own designed methodology and includes most recent statistical data.
Model of Dutch Disease
For the purposes of further analysis it is necessary to define what is assumed the Dutch
Disease in present study. In more detailed description Dutch Disease mechanism can me
described as follows. In the model of countries’ economics 3 sectors are present: the “booming”
sector – natural resources exploration, e.g. oil extraction; the “lagging” sector – manufacturing
and high value-added production; the “service” sector (non-tradable sector).
Fig.1. Model of 3 sectors’ economics of the country. Arrows perform the flow of incomes
into the country. White parallelogram is a countries economics, red, blue and salad squares are
the respective sectors of the economics. Here and further: small green squares mean no change in
price, red arrows mean the rise of price, blue arrows mean the decrease in price
Source: Korobeinikov, 2014
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