Title: The Dutch disease: the role of industrial policy for industrial transformation - the case of the jute industry

Authors: Carlo Morelli

Addresses: Economic Studies, University of Dundee, Perth Rd, Dundee, DD1 4HN, UK

Abstract: Often referred to as the 'Dutch disease', economies with resource advantages or specific specialisations can be highly resistant to change and as a result enter a period of absolute decline. These economies, or industries, very specialisation then becomes a barrier to further development when technologies and the world economy evolve. This paper critically examines the impact of this 'Dutch disease' in relation to a case study of the jute textile industry and its relationship to the Scottish city of Dundee. The paper however demonstrates that this sclerotic behaviour cannot be fully understood without also considering the dynamic elements that were also evident in the jute firms as the industry diversified out of jute and into artificial fibres.

Keywords: jute industry; Dutch disease; relative economic decline; Dundee; employment; competition; industrial policy; industrial transformation; diversification.

DOI: 10.1504/IJMCP.2014.063848

International Journal of Management Concepts and Philosophy, 2014 Vol.8 No.2/3, pp.156 - 167

Published online: 23 Jul 2014 *

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