IRAN ECONOMIC POTENCY FOR THE TREATMENT OF DUTCH DISEASE

Abstract

One of the features of petroleum economies is incidence of Dutch disease in them which by
increasing oil prices and oil revenues, the country wealth will be increased. The increase in
wealth causes reinforcement of non-tradable sector of economy and decline in tradable sector of
economy. In this case, some activities like services and construction will develop and instead, the
activities such as industry will stagnate. The Dutch disease will happen in this case. The main
aim of this research is the survey of Dutch disease in Iran economy for its treatment. In other
words, the result of investigation demonstrates the existence of Dutch disease in Iran economy.