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Abstract
Using Papua New Guinea as a case study, this paper investigates the macroeconomic
and sectoral impacts of various developments in its agricultural and resource sector. It
was found that commodity booms from 2004 to 2009 and the proposed large liquefied
natural gas project increase output growth substantially but with Dutch disease
consequences. The output expansion of the agricultural and fishery sectors on the
other hand has limited positive impacts and the challenge lies in raising the productivity
growth in these sectors and the better use of foreign aid. Lastly, the optimal
policy strategy for sustainable development in the agricultural, fishery and resource
sectors lies in the packaging of appropriate complementary policies (both institutional
and economic) that support one another and the coherent implementation of these
policies in a timely manner.