United Arab Emirates Government Polices To Encourage Economic Diversification From The Oil Base

rock anele colour colour color offense TheoryThe crude rock crude plague possibility , which likewise forms part of the more ordinary concept of resource disapprobation , emerged as the negation of the assumption that taxation generation capable on natural resources would create wealth (Stevens , 2003 . The oil curse theory posits that the countries strongly dependent on the export of natural resources that be non-renewable particularly crude oil , are likely to pair a slower step of sparing development (Katz , 2004 . The oil curse theory apply to countries or economies largely dependent on the export of oil such as the diaphragm East and MENA . A numeral of reasons account for this theoryHistorical Development of the Oil Curse TheoryThe oil curse theory emerged during the 1970s when the oil shocks highlighted t he impact of oil addiction on exporting countries .

During this prison term , the major oil producing countries in the Middle East implement an embargo of oil exports to the United States for semipolitical and economic reasons . The political reason is to put one across the United States not to support Israel in its military campaigns . The economic reason is for the oil exporting countries to arouse income generation fall the supply of oil in the world-wide market at an change magnitude level of demand would energize oil prices (Rosser , 2006 ) However , the embargo gave the opportunity for the oil and aptitude sector in otherwise countries to develop in to meet the demand . T he impact is the emergence of competitors i! ncreasing the competitive pressureOil Curse in Developing CountriesIn developing...If you need to get a spacious essay, order it on our website: OrderEssay.net

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