Modifying Edward’s model for real exchange rate and structure of economy in oil exporting developing countries

Abstract

After six years of ending my PhD in economics, it is still important to modifying Edward model for oil exporting developing countries in order to diversifying economy from oil dependency to less depends on one product to export, this case is known in economic literature as single commodity exports in oil exporting developing countries. This paper is extracted from my PhD thesis which is about the problem of depending on one product to export. This paper is also concentrated theoretical analyses only. In addition it contributes to literature via modifying Edwards’s model which is related to the problem of Dutch disease. The modification of Edwards’s model is one of the most important steps for researchers whose research is about the diagnosing of problems related to significant dependency on oil revenue. The modification of Edwards’s model is severely needed in order to more suitable for oil exporting developing countries to find the best outcomes of diagnosing and solving problems of “Dutch Disease”.