THE IMPACT OF OIL BUSINESS ON COUNTRIES` AGRICULTURE SECTORS: Dutch Disease Effect
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Dutch disease, Random Effect model, agriculture percentage in GDP, real FX rate.Abstrak
The purpose of this thesis is to inspect Dutch Disease hypothesis by analyzing the impact of oil industry boom on nations` agriculture value added to GDP by using nine real macroeconomic variables. This panel data includes 17 (OPEC and non-OPEC) countries from different continents over the years of 2007-2023. Hausman and Breusch-Pagan Lagrange econometric tests were applied to choose one regression among five different models. Final empirical model is constructed using Random effect estimations. Concluding outcome approves the Dutch Disease hypothesis in the analysis that in order to increase the agriculture value added to GDP by 1%, authorities should devaluate the national currency by 0.66%, ceteris paribus.
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