ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides a review of the literature on the theory of booming sector economics. This review includes the short, medium and long-term static and dynamic models of booming sector economics. The book presents an overview of the Papua New Guinea (PNG) economy. It describes structure, development, and changes in the sectoral composition over 1970-1994. The book also provides an econometric analysis of the determinants of the real exchange rate. It examines an econometric investigation of the sectoral impact of changes in the real exchange rate. The book aims to test the impact on sectoral growth of key macroeconomic variables, suggested by the resources boom literature. It also presents a detailed study of major resources booms experienced by PNG and the major macroeconomic policy measures undertaken by the government in the 1970s and 1990s.
