THE INCIDENCE OF DUTCH DISEASE IN THE AGRICULTURAL SECTOR OF IRAN 1989-2008

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BAHRAMI JAVID; FARSHCHI MARYAM

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Journal: ECONOMIC RESEARCH REVIEW Year:2011 | Volume:11 | Issue:1 (40) Page(s): 185-212

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Title

THE INCIDENCE OF DUTCH DISEASE IN THE AGRICULTURAL SECTOR OF IRAN 1989-2008

Author(s)

BAHRAMI JAVID | FARSHCHI MARYAM | Issue Writer Certificate

Keywords

AGRICULTURE SECTORQ2

DUTCH DISEASEQ3

IRANQ2

OIL PRICESQ2

SVARQ2

Abstract

This paper examines the incidence of DUTCH DISEASE symptoms in the agricultural sector of IRAN, by applying SVAR modeling to quarterly data of twenty years span, from1989-2008. Our findings do not reveal any significant relation between OIL PRICES, and value added of agricultural 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 agricultural sector.

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