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OIL EXPORTS AND ECONOMIC GROWTH IN THE MIDDLE EAST
Author(s) -
Metwally M. M.,
Tamaschke H. U.
Publication year - 1980
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1980.tb02645.x
Subject(s) - economics , middle east , aggregate (composite) , investment (military) , rest (music) , econometric analysis , capital (architecture) , capital formation , international economics , macroeconomics , economy , econometrics , human capital , economic growth , geography , financial capital , medicine , materials science , archaeology , politics , political science , law , cardiology , composite material
SUMMARY This study represents an econometric investigation into the role played by exports in the process of economic development of the major oil producers in North Africa and the Middle‐East over the past two decades. Single as well as simultaneous equation models were tested using aggregate and disaggregate data. Aggregate real analysis suggests that there is little evidence of spread effects of oil exports to the rest of the economy. Sectoral analysis indicates that the expansion in oil exports was not fully exploited in stimulating the manufacturing sector. Aggregate and disaggregate investment analysis clearly suggests that gross fixed capital formation, limited as may be, is extremely sensitive to growth in oil exports in all countries considered with the exception of Kuwait and Libya. The statistical results of the simultaneous relationships suggest the absence of feedback effects.