Oil and the 'Dutch Disease' : - The Case of the United Arab Emirates

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 n... Mehr ...