Economic development and dependency: the case of oil-exporting developing countries

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1982

OSTI ID:5458150

Shahrokhi, S

The reliance of oil-exporting developing countries on oil-revenues has certain implications for both their domestic economic structures and foreign trade relations. The purposes of this research were to study and analyze: (1) the extent of the dependence of oil-exporting developing countries on the exportation of a single exhaustible resource, (2) the impact of this dependence on domestic economic structures, and (3) the nature of the multifaceted links that were developed between oil producers, as the exporters of a raw material, and developed countries, as the exporters of manufactured goods and advanced technology (To show whether dependency relations have developed). After the review of literature, several hypotheses were advanced for the purpose of examining the above issues. The data, covering basically 1973 to 1980 period and concentrating on members of OPEC, were obtained from the secondary sources. Based on a critical analysis of data, the following conclusions were drawn: (a) The characteristics of the oil-based economies most resemble those of dependent economic systems, as opposed to self-sustaining and self-expanding economies. (b) Public expenditures and development projects are geared to position of balance of payments which in turn is conditioned by oil revenues. Thus, major fluctuations in the world demand for oil can have serious implications for the process of economic development in oil-nations. (c) Most oil-revenues are being recycled back into the developed market economies through a variety of channels. Based on the problems faced by oil-producing nations, it was recommended that a partial self-reliance strategy be followed in these nations to reduce over-dependence on foreign economic systems and to promote development. In the context of the above, diversification of the economy has to be pursued, aiming at expansion of non-oil industrial and agricultural sectors.

• OSTI ID: 5458150
• Country of Publication: United States
• Language: English

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DEVELOPING COUNTRIES
DIVERSIFICATION
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