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The Gregory Thesis Visits the Tropics

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  • Peter Warr

Abstract

A concern about large, export-oriented projects relates to the flows of foreign exchange into the domestic economy that they produce. These flows occur both during the investment phase of the project and subsequently during its operational phase, through export earnings. Foreign exchange inflows produce direct benefits for some groups, but may also indirectly harm others, through an appreciation of the real exchange rate. These indirect outcomes, known as the 'Gregory effect' in Australia and as the 'Dutch disease' or 'booming sector' effect elsewhere, are studied in this paper in the context of a large infrastructure project in Laos.

Suggested Citation

  • Peter Warr, 2006. "The Gregory Thesis Visits the Tropics," Departmental Working Papers 2006-03, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2006-03
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    References listed on IDEAS

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    Cited by:

    1. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.
    2. Arief Anshory Yusuf, 2008. "INDONESIA-E3: An Indonesian Applied General Equilibrium Model for Analyzing the Economy, Equity, and the Environment," Working Papers in Economics and Development Studies (WoPEDS) 200804, Department of Economics, Padjadjaran University, revised Sep 2008.
    3. Arief Anshory Yusuf & Arief Ramayandi, 2010. "Reducing Fuel Subsidy or Taxing Carbon? Comparing the Two Instruments from the Economy, Environment, and Equity Perspectives for Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 58, pages 115-129, April.
    4. Arief Anshory Yusuf, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," Working Papers in Economics and Development Studies (WoPEDS) 200604, Department of Economics, Padjadjaran University, revised Nov 2006.
    5. Laia PIÉ DOLS & Maria LLOP LLOP, 2010. "Modelling a Reduction of Greenhouse Gases Emissions in the Catalan Economy: The NAMEA Approach," EcoMod2010 259600132, EcoMod.
    6. Jayant Menon & Peter Warr, 2013. "Lao Economy: Capitalizing on Natural Resource Exports," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 70-89, June.
    7. Phillip Edmund Metaxas & Ernst Juerg Weber, 2016. "An Australian Contribution to International Trade Theory: The Dependent Economy Model," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 464-497, September.
    8. Yusuf, Arief Anshory & Resosudarmo, Budy P., 2007. "Searching for Equitable Energy Price Reform for Indonesia," MPRA Paper 1946, University Library of Munich, Germany.
    9. Boyd Hunter & Monica Howlett & Matthew Gray, 2015. "The Economic Impact of the Mining Boom on Indigenous and Non-Indigenous Australians," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 517-530, September.
    10. Phouphet Kyophilavong, 2011. "Will trade liberalization in least developed countries help during the crisis? Evidence from the Lao People’s Democratic Republic," STUDIES IN TRADE AND INVESTMENT, in: Trade-led growth: A sound strategy for Asia, chapter 13, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    11. Phouphet Kyophilavong & Xaignasack Lassachack & Thanouxay Volavong, 2016. "Do cash transfers help the poor during trade liberalization? Evidence from Laos," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(4), pages 355-371, December.
    12. Gregory, Robert G., 2012. "Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 1-30.
    13. Clements, Kenneth & Lan, Yihui & Roberts, John, 2008. "Exchange-rate economics for the resources sector," Resources Policy, Elsevier, vol. 33(2), pages 102-117, June.
    14. Arief Anshory Yusuf & Budy P. Resosudarmo, 2007. "Searching for Equitable Energy Pricing Reform for Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200701, Department of Economics, Padjadjaran University, revised Dec 2007.
    15. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

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    More about this item

    Keywords

    F32; O11; O53;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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