Abstract Seven 2013

GLOBAL

DEVELOPMENT STUDIES

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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.