S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics (SJE) Seoul Journal of Economics vol.08(3) (Fall 1995)
Dutch Disease in a Developing Country: The Case of Foreign Capital Inflows to Sri Lanka
- Issue Date
- Seoul Journal of Economics, Vol.8 No.3, pp. 311-330
- Several attempts have been made in recent years to investigate the Dutch disease type effects arising from windfall gains in Developing countries (LDCs) by using the traditional Australian Dutch disease model. This paper is another such attempt to examine the Dutch disease type consequences of foreign capital inflows to Sri Lanka within an ceonomy-wide framework. The results of our study show that this traditional model does not adequately address the impact of windfall gains on the economic structure of LDCs. Therefore, some modifications to the traditional model are needed to explain Dutch disease type consequences in these countries.