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Revision as of 09:20, 27 April 2005 by Nsaa (talk | contribs)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)Dutch disease is an economic phenomenon in which the discovery and exploitation of natural resources deindustrializes a nation's economy. In the given scenario, the value of the country's currency rises (making manufactured goods less competitive), imports increase, exports decrease, and productivity falls. The phemomenon was first observed in the Netherlands in the 1960s, when large reserves of natural gas in the North Sea were first exploited. There is now a substantial body of research on the topic.
The term Dutch disease appears to have been coined in The Economist of November 26, 1977. See the external link Test of Dutch Disease Hypothesis below