ECONOMICS FOR BUSINESS
Project Report on –
Oil and the recent
‟Dutch Disease‟
- The Case of the United Arab
Emirates
Submitted by –
Amitava Manna
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Table of Contents
Introduction .................................................................................................................................................. 2
Purpose ......................................................................................................................................................... 3
UAE Background ........................................................................................................................................... 4
Theoretical Framework
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Purpose
The purpose of this paper is to study U.A.E‟s development in economic growth since 1975 and establish if there are any signs of the Dutch Disease by testing the ratio of tradable goods to non- tradable goods and the effects by other macroeconomic variables.
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UAE Background
U.A.E consists of the seven emirates Abu Dhabi, Dubai, Sharjah, Ra´s al-Khaimah, Ajman,
Umm al-Qaiwain and Fujairah, which are located on the southern Arabian Gulf. On the 2nd of
December 1971, the country became independent after being under British rule for a period of 70 years. The independence and discovery of oil triggered the economic development in U.A.E which led to a huge expansion in the population. The population boom in U.A.E is a result of the increased demand for labor throughout the past four decades and consists for the most part (83%) of labor from foreign countries referred to as expatriates. United Nation‟s (UN) database illustrates the division of the labor from two perspectives; first from the year 2000 compared to the changes that prevailed in 2010. Female participation and male participation in 2000 consisted of 34.4% in the former group and 92% in the latter group. As stated in the introduction, one of the impacts when an economy is experiencing signs of the Dutch Disease is the high inflation rate followed by a change in the real exchange rate. Fluctuations in the
The earth was being populated and man was spread-over the earth, which caused a growth in civilization.
While having increased resources was the primary perk, the increased population was not far behind. Increasing population meant that the Americas and Europe could
increase in population due to food, there was a huge decline in population due to diseases like
On August 28, 1859, George Bissell and Edwin L. Drake found oil in oil creek Pennsylvania. Oil did not become popular (or a major industry) until the late 1800’s. It was still a great improvement and (in today's time) one of the most important advancements all-time It is important because most everything that is in the world requires oil in order to run properly. Oil fuel our airplanes, cars, and trucks, to heat our homes, and to make products like medicines and plastics. It pollutes our environment. It causes danger to plants and animals d spilled. When the oil spilled n the sea, it caused tremendous danger to the sea animals. Oil helps because after being distilled it causes tarry residue which helps road surfacing, and for roofing. When
The population growth in the United States, has been booming because of the growing population of immigration and new borns coming to the world. Immigrants that were coming into the United
During 1680 to 1750 there was a tremendous population boom in North America. The factors that lead to an increase in population included; higher birthrates, healthier environment, and a reliance on free labor.
The rise in births and marriages during the Baby Boom required more jobs to be created and Americans to work harder for their growing families.
This was a large change because it affected entire populations migrating and urbanizing the cities of the modern
The teacher will write the following question on the board, and ask students to guess what they think the percentage or number is.
Renewable energy has currently become a significant aspect in the countries generation, combination, and a constitution focus of government policy for energy, and environmental protection. As a result of public’s growing responsibility for the environment and constantly binding rules, and regulations of emission in the electric power industry, government has facilitated policies to boost the amount of renewable energy in the electricity generation portfolio. Additionally, the generation of electricity from renewable resources creates insufficient, and frequently, zero emissions of pollutants that comes from traditional fossil fuel production technologies. The additional use of renewable energy aids utilities in their emission agreement obligations. Furthermore, the anticipation of agreement with any future carbon emissions management would further toughen the incentive to move towards cleaner electricity creating technologies (Langwith, 2009).
The war caused growth and development for every aspect of the
was getting more wealthy and increasing in population as well as technology which was causing
Indeed, by looking back at History, from 1801 to 2011, the population rose from 10 million to 55 millions. In this expansion, three waves of growth are noticeable: a first one referring to the end of World War II with about 400 000 births between 1941 and 1951, a second concerning Seventies Baby Boomers with approximately 350 000 births and a third wave related to the Nineties generation with 300 000 births. However, if the British population expanded
Firstly, earlier those days, the industrialization had just started. Many people started looking for new opportunities outside their native. As the local opportunities were limited, so people easily got their jobs in better places other than their own countries. This led to inflow of immigrants and subsequently, rise in the population started to begin.
Netherlands is the fifth- largest economy in the Euro-zone. It is known for its stable economic relations with the industrial sector, moderate inflation and unemployment. It also has a sizable trade surplus and plays an important role as the transportation hub. The industrial sector deals mainly in food processing, chemicals, petroleum refining and electrical machinery. The agricultural sector is highly mechanized thus only provides employment to only 2% of the population but provides surpluses to the food- processing industries and for exports. Netherlands along with 11 other of its EURO partners started spreading it’s currency from 1 January 2002. The Dutch economy after 26 years of uninterrupted stability was left contracted by 3.5% owing to the international financial crisis. The Dutch economy suffered because of the close contact between some of its banks with the US mortgage- backed securities. In 2008 the government nationalized two banks and injected billions of dollars to stem the losses in that crucial sector. In an effort to boost the economy the government started infrastructure projects and gave tax breaks to the employers to retain the workers and expanding export credit facilities. The stimulus programs and bank bailouts led to a deficit of 5.3% in the GDP, in 2010, as compared with a surplus of 0.7% in 2008. The Prime Minister started implementing fiscal consolidation measures in early 2011, which resulted in a reduced fiscal deficit to 3.8% of the GDP. In