Oil boom
An oil boom is a boom in the oil producing sector of an economy. Generally, this short period initially brings economic benefits, in terms of increased GDP growth, but might later lead to a resource curse.
Consequences
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 did not.[1]
History
Some 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-continuing)
References
- ^ 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.
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