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1 - Copy - Dutch Disease Definition: A phenomenon that...

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Dutch Disease Definition: A phenomenon that refers to a crowding out of other traded goods due to a boom in oil production. The rise in influx of wealth from oil sales raises the real exchange value of the producer country’ currency. This then makes it cheaper for its people to import tradable goods rather than buying from the domestic market. As a result, the oil boom causes a decline in the traded goods sector while expanding the non-traded sector. Significance: The Dutch Disease reduces female participation in the labor force. In many developing countries, women are largely employed in the traded sector while they are excluded from many parts of the non-traded sector. With the expansion of the non-traded sector due to Dutch Disease, demand for traded sector labor will fall, driving down female wages. Also, with male wages in the non-traded sector increasing, ‘female unearned income’ increases as well. Cite/Example:
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1 - Copy - Dutch Disease Definition: A phenomenon that...

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