Abbas Shakeri; Teymour Mohammadi; Hamid Nazeman; Javad Taherpoor
Volume 13, Issue 50 , October 2013, , Pages 63-86
Abstract
The issue of the impact of oil revenues on the economic performance of the countries that own these incomes is a significant part of the economic literature. One of the main reasons for the poor performance of resource-rich countries is the incidence of “Dutch Disease” in these countries. ...
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The issue of the impact of oil revenues on the economic performance of the countries that own these incomes is a significant part of the economic literature. One of the main reasons for the poor performance of resource-rich countries is the incidence of “Dutch Disease” in these countries. Considering this issue, after we review the literature on Dutch Disease, we first focus on the occurrence of Dutch Disease in Iranian economy and in the next stage, we study the effects of this problem on economic growth. To see if the problem of Dutch Disease has happened in Iranian economy or not, we have studied the production share of different tradable sectors (industry and agriculture) and non-tradable sectors (services and housing) and to study the effects of Dutch Disease on economic growth, we have used the growth models related to this research area and we have estimated these models by applying Ordinary Least Squares (OLS) method with Withe correction. The results of our study show that the Dutch Disease has happened in Iranian economy along with the increase in oil incomes, especially in 1970s and 2000s, and also the occurrence of Dutch Disease has had a negative effect on economic growth in Iranian economy.
Javid Bahrami; Maryam Farshchi
Volume 11, Issue 40 , April 2011, , Pages 185-211
Abstract
This paper examines the incidence of Dutch Disease symptoms in the agriculture sector of Iran, by applying SVAR modeling to quarterly data of twenty years span, from1367-1386 our findings do not reveal any significant relation between oil prices, and value added of agriculture sector, but indicate a ...
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This paper examines the incidence of Dutch Disease symptoms in the agriculture sector of Iran, by applying SVAR modeling to quarterly data of twenty years span, from1367-1386 our findings do not reveal any significant relation between oil prices, and value added of agriculture sector, but indicate a significant negative effect of oil price on the relative price of agricultural products. Therefore, the incidence of Dutch Disease cannot be rejected. Although it seems that protective measures, in some extent, have been succeeded in insulating the production from harmful effects of decrease in the relative prices, but these measures, in no way will ensure the future development of the agriculture sector.
