An econometric model for the Libyan economy, 1962-1977

Abohobiel, Abdulfattah Abduisalam

An econometric model for the Libyan economy, 1962-1977 [Ressource électronique] / Abdulfattah Abduisalam Abohobiel - 1 vol. (373 p.)

Doctor of philosophy : Economics : Indiana University : 1983

Bibliogr. p. 237-244

The last quarter of 1961 marked a new era in the history of the Libyan economy, during which the first crude oil shipment left for Europe. Since then, the Libyan economy has in effect undergone a structural change. Not only has oil become the leading sector in the economy, but it also enables the government, which is the sole owner of all natural resources and the receiver of their revenues, to actively participate in the economy. One of the main problems that oil has brought with it is the relative factor endowment problem. In the pre-oil era, labor was the relatively abundant factor of production, while capital was the scarce one. This situation has reversed since 1962, and labor has become the relatively scarce factor. On the other hand, the last quarter of 1973 marked a new era in international economic relations, and in particular in the international oil business. As a result of the OPEC decision to increase oil prices, many and diverse impacts were observed In the oil exporting countries, and Libya was no exception. The rapid expansion of oil exports resulting from the increase in oil prices increased the influx of foreign currencies, which were used partially to finance domestic development programs as well as to finance the imports of goods and services. Moreover, the high price of oil enabled the government to increase sharply its expenditures on domestic development programs, which in turn stimulated internal industries


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