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  1. Library Resource
    January, 1997
    Ecuador, Latin America and the Caribbean

    In the literature about macroeconomics and deforestation, it is often supposed that strong foreign exchange outflows (e.g. debt service) increase deforestation, as higher poverty augments frontier migration and natural resources are squeezed to generate export revenues. This paper analyses the opposite phenomenon, i.e. the deforestation impact of substantial foreign exchange inflows, which is analysed in the "Dutch Disease" macroeconomics literature.

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