Apergis, NicholasEl-Montasser, GhassenSekyere, EmmanuelAjmi, Ahdi NoomenGupta, Rangan2014-11-032014-11-032014-09Apergis, N, El-Montasser, G, Sekyere, E, Ajmi, AN & Gupta, R 2014, 'Dutch disease effect of oil rents on agriculture value added in Middle East and North African (MENA) countries', Energy Economics, vol. 45, pp. 485-490.0140-9883 (print)1873-6181 (online)10.1016/j.eneco.2014.07.025http://hdl.handle.net/2263/42450This paper investigates the effect of oil rents on agriculture value added in oil producing Middle East and North African (MENA) countries. Annual data from1970 to 2011, panel cointegration tests by Pedroni (1999), long ran panel causality tests by Canning and Pedroni (2008), and two-step SystemGMMby Blundell and Bond (1998) are used in this study. We find a negative relationship between oil rents and agriculture value added in the long run, with a rather slowrate of short run adjustment of agriculture value added back to equilibriumafter a boomin oil rents. These results indicate that an oil sector boom is associated with a contraction in the agriculture sectors of the countries in the panel in the long run. This is probably attributable to a resource movement effect from other economic sectors to the booming oil sector in these countries. This serves as evidence of a Dutch disease effect of an oil sector boom on agriculture in the MENA countries in this study.en© 2014 Elsevier B.V. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Energy Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Economics, vol. 45, pp. 485-490, 2014. doi : 10.1016/j.eneco.2014.07.025.Dutch diseaseOil rentsAgriculture value addedMiddle East and North African (MENA) countriesPostprint Article