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Volume Seven                                                                              Winter-Spring 2012-2013                                                        Numbers 1-2.

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DUTCH DISEASE, REVEALED COMPARATIVE ADVANTAGE AND ECONOMIC DIVERSIFICATION IN A SMALL OIL BASED ECONOMY

 

 Rebecca Gookool and Roger Hosein

 Department of Economics

 University of the West Indies

 St. Augustine Campus, Trinidad

 Published online: February 10, 2017

 

 ABSTRACT

                                                                      

This article investigates the link between Dutch Disease and the revealed comparative advantage structure of the Trinidad & Tobago economy for the period 1991 -2011.  The article divided the labor market into booming tradable, tradable and non-tradable sectors. The article starts with an elaboration of the Dutch Disease model with a clear directive as to why there is the need to diversify the production structure of the Trinidad & Tobago economy, even though the economy is producing its comparative advantage good — hydrocarbon products. The article then provides a variety of suggestions regarding how to strengthen the non-booming tradable aspect of the economy.

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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