According to the Dutch Disease core model a boom in natural resources will eventually lead to a shift of production between sectors: from tradable goods to non-tradable goods. The authors found it interesting to research if United Arab Emirates has been a subject to any of the effects caused by the disease, due to the oil boom during the 1970s and the huge development that has appeared in the country. If the United Arab Emirates would be a vic-tim of the disease the decline in exports of the natural resource will result in a decline in the non-oil tradable goods which will affect the country negatively. Furthermore, the disease can also make it more difficult for the country to deal with the problem of high inflation. A time series covering the period 1975-2005 is used to analyse if the United Arab Emirates has experienced symptoms of the disease. Results show that the country has experienced some symptoms of the Dutch Disease during the period 1975-198 since changes in the price of oil caused tradables to shift to the non-tradable sector. Another sign of the disease is the high inflation rate Unite Arab Emirates experienced during the selected period, how-ever high inflation rate could be caused by other factors as well. Furthermore, the larger in-crease in the non-tradable sector compared to the tradable sector is also an indication of the disease in the country. According to these findings the authors can conclude that United Arab Emirates has experienced symptoms of the disease, however, it cannot be concluded that it has been a victim of the disease.

<p>According to the Dutch Disease core model a boom in natural resources will eventually lead to a shift of production between sectors: from tradable goods to non-tradable goods. The authors found it interesting to research if United Arab Emirates has been a subject to any of the effects caused by the disease, due to the oil boom during the 1970s and the huge development that has appeared in the country. If the United Arab Emirates would be a vic-tim of the disease the decline in exports of the natural resource will result in a decline in the non-oil tradable goods which will affect the country negatively. Furthermore, the disease can also make it more difficult for the country to deal with the problem of high inflation. A time series covering the period 1975-2005 is used to analyse if the United Arab Emirates has experienced symptoms of the disease. Results show that the country has experienced some symptoms of the Dutch Disease during the period 1975-198 since changes in the price of oil caused tradables to shift to the non-tradable sector. Another sign of the disease is the high inflation rate Unite Arab Emirates experienced during the selected period, how-ever high inflation rate could be caused by other factors as well. Furthermore, the larger in-crease in the non-tradable sector compared to the tradable sector is also an indication of the disease in the country. According to these findings the authors can conclude that United Arab Emirates has experienced symptoms of the disease, however, it cannot be concluded that it has been a victim of the disease.</p>

This thesis analyses the extent to which a boom in a particular export commodity sector (i.e., oil) affects relative price of non-tradable goods against tradable goods, the real exchange rate and competitiveness in the rest of the economy: This problem has been analysed in the early stage by (Corden and Neary 1982) with the so-called ‘Dutch-disease’. As a result, booming sector (oil Sector) the country’s currency appreciates, thereby reducing the competitiveness of the country’s traditional export sector in international market. This thesis examines whether Dutch Disease is present in Iraq in the light of having not study about Dutch Disease phenomena. It evaluates the impact of growing oil revenues on non-oil sectors of the Iraqi economy. It produces some empirical evidence for the explanation non-tradable goods and contraction of tradable goods sector due to booming oil sector and appreciation real exchange rate and made tradable goods sector become uncompetitive for export. The main findings form this thesis that the Iraqi economy was subject to have the Dutch disease phenomena during the boom. Some of the indications of the disease, remarkably the increase of relative prices, the real exchange rate appreciation, contraction tradable goods sector and expansion of nontraded goods output were applicable. The study uses annual time series data sourced from home and international agencies from 1970 to 2013. Due to problem with endogeneity, the data are analysed through the use of two stages least square. Finally, the thesis discusses briefly some policy measures that will help avoid the issue of appreciation real exchange rate and changing the structure of economy out of tradable goods to non-tradable goods sector.

This thesis examines the effects of international capital flows on economic growth by using a dynamic general equilibrium framework based on a three-sector Ramsey Model. In order to detect the impact of financial integration on production, allocation of resources across three sectors and consumption, two different economic environments are modelled. While the first model represents a closed economy with financial autarky, the second model examplifies a financially integrated open economy with partial capital mobility. Each of the models is calibrated to Turkish economy based on the data of the year 2006. The simulation results demonstrate that the presence of international capital flows, despite being limited by a borrowing constraint, reverses the impact of economic growth on production and resource allocation. It is found that even though the importance of production in tradable-goods sector diminishes in the absence of international capital flows, it increases in the open economy model. Moreover, the findings show that while production in the closed economy model simply adjusts to domestic demand, that of the open economy model is not constrained by it. This can be explained by the augmentative effect of partial capital flows on the impact of foreign demand on domestic production.