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This paper aims to investigate whether official development assistance (ODA) inflows to developing countries (lower-middle and low income) can cause the symptoms of Dutch disease or not.

This study applies the methodology of dynamic panel data estimation with a one-step system generalized methods of moment (GMM) for the sample of 59 developing countries from 2001 to 2019.

The results indicate that ODA (as a percentage of gross domestic product (GDP)) rises by 1%, the real effective exchange rate (REER) appreciates by 0.252%. This finding reveals that these selected developing countries have faced the symptoms of Dutch disease. The countries with the higher ODA ratio have a higher effect of the Dutch disease, and the managed floating exchange rate regime is the lowest impacted, when compared to the fixed and flexible exchange rate.

The selected countries are recommended to use ODA inflows right and efficiently. These ODA inflows should be invested in productive sectors or support for production rather than in consumption. The managed float exchange rate regime is applied to reduce the symptom of Dutch disease for the selected countries. The good cooperation of monetary and fiscal policies is important to absorb the huge ODA inflow and sterilize the adverse effects of the disease.

The paper contributes to the literature and empirical of the Dutch disease. An adverse effect of the huge ODA inflow to the developing countries appreciated of the real exchange rate and caused the symptom of the dutch disease.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2022-0777

This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers and consumers.

The research used annual series data from 1991 to 2021 and employed inferential, simulation, and descriptive analyses. The two-stage least squares (2SLS) of 19 simultaneous equations were used to estimate parameters.

The results indicate that free trade policies and restrictions have influenced the citrus industry, leading to a reduction in Indonesian citrus imports, and increased consumer and producer prices. However, eliminating import tariff policies on citrus from China and import restrictions increased producer surplus while decreasing consumer surplus, government revenue, and total welfare. Therefore, trade policies should be combined with non-trade policies such as citrus region development policies and advancing cultivation technology.

This study provides empirical evidence for the Indonesian government to formulate effective citrus trade and development policies. It emphasizes the importance of carefully considering the impact of trade policy on the citrus industry and the need to implement non-trade policies such as citrus zone development policies and advancing cultivation technology to benefit both producers and consumers.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0148