Oil revenues and manufacturing output

<p>In our article in the July 1980 issue of Fiscal Studies, we examined the impact of the growth of North Sea oil production on the domestic economy. A major conclusion of that article was that 'the contraction of manufacturing output, and an increase in domestic absorption on imported manufactures, are the only means by which the British economy can benefit from the North Sea'. That conclusion has been the subject of considerable controversy. In this paper, we attempt to evaluate some of the criticisms which have been made of our analysis and present some extensions and qualifications.</p>