Implications of oil revenue allocation for the Iranian economy 1953-77

Abstract

The Iranian economy during the 1953-77 period is the subject of this thesis where the implications of oil revenue allocation for the country’s economy is examined in detail. The development of the all-important oil sector is studied in-depth and its inter-action with the newly-established modern industrial sector and the rest of the economy is assessed. The relationship between investment in industry and agriculture and oil revenue is examined. The overall economic development of the country is reviewed, especially the progress of the strong traditional sector and the relatively new modern sector. Having analysed these various aspects of the economy it was possible to establish whether any linkages existed between the oil industry and other sectors of the economy. Iran was an excellent case to study as it displayed many of the characteristics of an under-developed economy, yet it had its financial constraints suddenly removed as a result of increased oil revenue. However, due to its inadequate infrastructure the Iranian economy faced considerable problems and the level of economic development that had been hoped for did not materialise.