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Dutch disease |
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Dutch disease n (Economics) the deindustrialization of an economy as a result of the discovery of a natural resource, as that which occurred in Holland with the exploitation of North Sea Oil, which raised the value of the Dutch currency, making its exports uncompetitive and causing its industry to decline How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The effect of oil exports on the exchange rate makes manufactured and other tradable goods cheap to import and uncompetitive on global markets; this so-called Dutch disease inhibits investment, job creation, and the growth of small and medium enterprises. |
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