Economies of Middle Eastern Countries

Economies of Middle Eastern Countries Brief Overview of Some Basic Facts

Country Formation/Independence Population Birth rate per 1000 Gender ratio m/f % Christians % Muslims % Jews % Others Turkey 1923 71,158,647 16.4-1.02 0-99 0-1 Syria 1946 18,881,361 27.19 1.05-10-88 0-2 Lebanon 1943 (French) 3,826,018 18.08 0.94-39-59.7-0-1.3 Israel 1948 6,352,117 17.71 0.99 2.1-14.6-76.5-6.8 West Bank and Gaza 3,889,249 34.4-1.04 0.7-98.7-0.6-0 Iraq 1932 26,783,383 31.44 1.02 3-97 0-0 Iran 1979 68,688,433 16.57 1.04 0.5-99 0.5-0 Saudi Arabia 1932 27,019,731 29.1-1.21 0 100 0-0 Egypt 1922 (UK) 78,887,007 22.53 1.02 6-91 0-0 Libya 1951 (UN) 5,900,754 26.09 1.05-97 Yemen 1990 21,456,188 42.67 1.04-99 Oman 1650 (Portugal) 3,102,229 35.76 1.26 0-99 0-1 United Arab Emirates 1971 2,563,212 16.09 1.442 4-96 0-0 Qatar 1971 (UK) 885,359 15.56 1.88 0-95 0-5 Bahrain 1971 (UK) 698,585 17.53 1.27 9-85 0-6 Kuwait 1961 (UK) 2,418,393 21.95 1.52-15-85

Country

Formation/Independence

Population

Birth rate per 1000

Gender ratio m/f

Christians

Muslims

Jews

Other Countries Argentina 1816 (Spain) 39,921,833 16.53 0.97-94 1.5-2-2.5 Australia 1901 (UK) 20,264,082 12.02 0.99-67.4-1.5 Brazil 1822 (Portugal) 188,078,227 16.3-0.98-89 0.02 0-10.98 Germany 1871 82,422,299 8.2-0.96-68 3.7-0-28.3 Italy 1861 58,133,509 8.54 0.96 1.7 France 486 60,876,136 12.91 0.95-90 7.5-1-1.5 Mexico 1810 (Spain) 107,449,525 20.36 0.96-95 0.3-0-4.7 Netherlands 1579 16,491,461 10.7-0.98-51 6-0-43 Norway 1905 4,610,820 11.27 0.98-90.1-1.6-0-8.3 Russia 1991 142,893,540 10.92 0.86-15 Spain 8th Century 44,108,530 9.98 0.96-94 2.5-0-3.5 South Korea 1945 (Japan) 48,846,823 9.93 1.01-26 0.04 0-73.96 UK 10th Century 60,609,153 10.67 0.98-71.6-2.7-0-5.7 USA 1776 298,444,215 14.16 0.97-76 1.4-1-21.6

Country GDP ($ billion) % of USA GDP per capita % of USA Trade volume ($ billion) % of GDP Political regime Last election Turkey 508.7-4.329362 7,400.00-18.45387 139.8925 27.5 Republican parliamentary democracy 2007 Syria 60.44 0.514383 3,400 8.478803 27.2524 45.09 Military 2007 Lebanon 18.83 0.160255 5,000 12.46883 9.198455 48.85 Republic 1998 Israel 129 1.097872 20,800 51.87032 80.7411 62.59 Parliamentary democracy 2006 West Bank and Gaza 768 6.53617 600 1.496259 Iraq 54.4-0.462979 2,100 5.236908 Interim government 2005 Iran 516.7-4.397447 7,700 19.202 Theocratic republic 2006 Saudi Arabia 310.2-2.64-12,000 29.92519 165.3676 53.31 Monarchy n/a Egypt 316.3-2.691915 4,200 10.47382 Republic 2005 Libya 37.48 0.318979 6,700 16.70823 23.24135 62.01 Jamahiriya 2006 Yemen 16.25 0.138298 800 1.995012 Republic 2006 Oman 38.09 0.32417 13,100 32.66833 30.53294 80.16 Monarchy n/a United Arab Emirates 63.67 0.541872 25,200 62.84289 81.63767 128.22 Federation 2004 Qatar 19.49 0.165872 23,200 57.85536 17.58583 90.23 Traditional monarchy n/a Bahrain 13.01 0.110723 19,200 47.8803 16.08036 123.6 Constitutional hereditary monarchy n/a Kuwait 48 0.408511 21,300 53.11721 34.9344 72.78 Nominal constitutional monarchy n/a Argentina 483.5-4.114894 12,400 30.92269 84.5158 17.48 Republic 2003 Australia 611.7-5.205957 30,700 76.5586 211.1588 34.52 Democratic federal state system Brazil 1492 12.69787 8,100 20.1995 345.8456 23.18 Federative republic 2006 Germany 2362 20.10213 28,700 71.57107 1360.984 57.62 Federal republic 2004 Italy 1609 13.69362 27,700 69.07731 700.5586 43.54 Republic 2006 France 1737 14.78298 28,700 71.57107 858.7728 49.44 Republic 2007 Mexico 1006 8.561702 9,600 23.94015 545.0508 54.18 Federal republic 2006 Netherlands 481.1-4.094468 29,500 73.56608 552.7358 114.89 Constitutional monarchy n/a Norway 183 1.557447 40,000 99.75062 99.369 54.3 Constitutional monarchy n/a Russia 1408 11.98298 9,800 24.4389 713.0112 50.64 Federation 2004 Spain 937.6-7.979574 23,300 58.10474 406.7309 43.38 Parliamentary monarchy 2004 South Korea 925.1-7.873191 19,200 47.8803 Republic 2002 UK 1782 15.16596 29,600 73.81546 756.8154 42.47 Constitutional monarchy 2003 USA 11750 100 40,100-2231.325 18.99 Constitution-based federal republic 2004 Table 1c

Country

Years of schooling

Illiteracy rate

Turkey

Syria

Lebanon

Israel

West Bank and Gaza

Iraq

Iran

Saudi Arabia

Egypt

Libya

Yemen

Oman

United Arab Emirates

Qatar

Bahrain

Kuwait

Country

Years of schooling

Illiteracy rate

Argentina

Australia

Brazil

Germany

Italy

France

Mexico

Netherlands

Norway

Russia

Spain

South Korea

UK

USA

Country

Labor force participation Total

Male

Female %

Fertility

Life expectancy

Turkey

Syria

Lebanon

Israel

West Bank and Gaza

Iraq

Iran

Saudi Arabia

Egypt

Libya

Yemen

Oman

United Arab Emirates

Qatar

Bahrain

Kuwait

Other Countries

Country

Labor force participation Total

Male

Female %

Fertility

Life expectancy

Argentina

Australia

Brazil

Germany

Italy

France

Mexico

Netherlands

Norway

Russia

Spain

South Korea

UK

USA

The main differences between the ME countries and Industrialized countries

In general, the life expectancy rates are higher in the industrialized countries but the fertility rates are lower. The workforce participation by women is higher in industrialized countries than ME countries. The years of compulsory schooling are lower in ME countries and the illiteracy rates are generally higher. The GDP is generally lower in ME countries than industrialized countries, as is the GDP per capita. Most of the ME countries are predominantly Muslim, where the industrialized countries are predominantly Christian. The birth rates are generally higher in the ME countries and there is a higher ratio of men to women.

Human Capital and the Middle East

1.a.

The co-efficient is 0.092.

1.b.

The regression coefficient is 0.04.

2. The estimated rate of return would be calculated using:

0.092x + e3.309 where x is the number of years schooling.

So the estimated return of 1 year of schooling would be $27.4.

As the regressions obtained are quite similar between the ME countries and industrialized countries it would be suggested that the differences in the amount of time spent at school would make a difference to GDP per capita in the ME countries.

These estimates are similar to the ones which I obtained. I estimated that returns would be approximately 9.2 percentage points for all the countries studied, and approximately 4 percentage points in ME countries.

The projections are given in the table. Data was not available for all countries so there are blank spaces were the projection could not be calculated.

Country

Projected GDP per capita

Turkey

Syria

Lebanon

Israel

West Bank and Gaza

Iraq

Iran

Saudi Arabia

Egypt

Libya

Yemen

Oman

United Arab Emirates

Qatar

Bahrain

Kuwait

Other Countries

Argentina

Australia

Brazil

Germany

Italy

France

Mexico

Netherlands

Norway

Russia

Spain

South Korea

UK

USA

Country

GDP per capita

Projected GDP per capita

Turkey

Syria

Lebanon

Israel

West Bank and Gaza

Iraq

Iran

Saudi Arabia

Egypt

Libya

Yemen

Oman

United Arab Emirates

Qatar

Bahrain

Kuwait

Other Countries

Argentina

Australia

Brazil

Germany

Italy

France

Mexico

Netherlands

Norway

Russia

Spain

South Korea

UK

USA

Based on these calculations the difference between Syria's GDP and that of the U.S. cannot be attributed to schooling

Based on these calculations the difference between Qatar's GDP and that of the U.S. could be attributed to differences in length of schooling.

The main reasons for lack of investment in human capital in ME countries may be the lack of stability in the country due to the differences in political regime and conflict.

We should not expect that they invest less in human capital, as this is a means by which the market perfection may be improved.

There are other factors which will impact upon both the between and within comparisons, such as religious issues and governmental policy issues.

a. The main findings in the figure indicate that during the eighties there was a wide difference between the economic returns from eleven years or less schooling and 16 years or more schooling in the West Bank and Gaza strip. However this changed during the late 1980s and early 1990s so that by 1992 there was less financial benefit to completing longer schooling. The optimal amount of schooling in 1992 was twelve years to achieve the highest per capita GDP.