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The Trade income distribuition from 2005 to 2010 in saudi arabia - Research Paper Example

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The national income of Saudi Arabia is mostly dependent on the international trade income of the country. Oil being the major product…
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The Trade income distribuition from 2005 to 2010 in saudi arabia
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The Trade income distribuition from 2005 to 2010 in saudi arabia

Download file to see previous pages... The national income of the country has been unevenly distributed because the trade income is based majorly on the oil sectors. The government is more focused on minimizing poverty rather than mitigating the gap between the incomes. The trade income of the country can possibly be considered as a reason of the spread of such inequality in income.
The expanded trade produce and the changes in the income distribution have been highly imbalanced over the last few years in Saudi Arabia. However, freer trade is only possible with the use of better political as well as socio economic development of the economy. The empirical growth theory has been propounded on whether the government expenditure can promote the growth of the economy. Saudi Arabia’s present economic score has been 62.2 making the economy 77th freest economy in the world as per the economic index of 2014. The oil-based economic system backed by absolute monarchy rule has been the major reason for the steady economic development of the country. Fiscal policy is observed to be a key element of Saudi Arabia’s macroeconomic policies stressing on the financing investment and the consumption activities. Parallel to the above economic trends the country is also observed to be the fastest growing economy in the Middle East and North Africa regions. The government of Saudi Arabia gives major importance to the public expenditures, which broadly includes wide ranges of expenditures ranging from wages to the public welfare and human resource reinforcement. Considerably, it could be noted that the discovery of the oil in the commercial quantity brought major changes in the economic development of the country. During the Post-World War II, the country took active participation in the export of oil all over the globe. Consequently, the steady export of oil led to the development of a strong infrastructure of the country, which assisted in developing the economic growth of the country in return ...Download file to see next pagesRead More
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