An oil boom is a period of largeinflow of income as a result of high global oil prices or large oil production in an economy. Generally, this short period initially brings economic benefits, in terms of increased GDP growth, but might later lead to a resource curse.
According to the Dutch disease theory, the sudden discovery of oil may cause a decline in the manufacturing sector. The consequences will vary from country to country, depending on the country's economic structure and stage of development.[1] For example, after the oil boom in Gabon, the country showed symptoms of the Dutch disease,[2] while oil-producing Equatorial Guinea didn't.[1]
^ abToto Same, Achille (2008). Mineral-rich countries and Dutch disease: Understanding the macroeconomic implications of windfalls and the development prospects the case of Equatorial Guinea. World Bank Publications. p. 31.
^Zafar, Ali (2004). What happens when a country does not adjust to terms of trade shocks?: the case of oil-rich Gabon. World Bank Publications. p. 9. ISBN978-1-00-716495-7.
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boom, this, article, about, economic, booms, sector, spill, management, device, boom, containment, boom, period, large, inflow, income, result, high, global, prices, large, production, economy, generally, this, short, period, initially, brings, economic, benef. This article is about economic booms in the oil sector For the oil spill management device see Boom containment An oil boom is a period of large inflow of income as a result of high global oil prices or large oil production in an economy Generally this short period initially brings economic benefits in terms of increased GDP growth but might later lead to a resource curse Contents 1 History 2 Consequences 3 See also 4 ReferencesHistory editSome important oil booms around the world include Mexican oil boom Mexico 1977 1981 Pennsylvanian oil rush United States 1859 Texas oil boom United States early 1900s 1940s Calgary oil boom Canada 1947 North Dakota oil boom United States 2008 2015 Consequences editAccording to the Dutch disease theory the sudden discovery of oil may cause a decline in the manufacturing sector The consequences will vary from country to country depending on the country s economic structure and stage of development 1 For example after the oil boom in Gabon the country showed symptoms of the Dutch disease 2 while oil producing Equatorial Guinea didn t 1 See also editEnergy crisis 1970s energy crisis 1973 energy crisis 1979 energy crisis 1980s oil glutReferences edit a b Toto Same Achille 2008 Mineral rich countries and Dutch disease Understanding the macroeconomic implications of windfalls and the development prospects the case of Equatorial Guinea World Bank Publications p 31 Zafar Ali 2004 What happens when a country does not adjust to terms of trade shocks the case of oil rich Gabon World Bank Publications p 9 ISBN 978 1 00 716495 7 nbsp This economics related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Oil boom amp oldid 1216456589, wikipedia, wiki, book, books, library,
