An Economic Analysis Of The Prosperity Of Saudi Arabia's Petroleum Economy From 1970-1982

1970s was the prosperous period of Saudi Arabia's petroleum economy. In order to investigate the reasons, this paper stressed the economic policy from the angle of " central - periphery" view. Pointing out Saudi'petroleum economy was a peripheral economy as its rentier characteristic in the world economics circle. Meanwhile, as the "derivative dependency" and "preoccupied paternalism" position of Saudi'petroleum economy made it to be the central economy in the Arabic economy circle, which could speed its developing. Under this dual background, Saudi'petroleum economy had made attachment developing with the temperate petroleum policy being successfully carried out through the 1970s. The large amount petroleum income had guaranteed the balance of economical supply and demand; under the help of American, the petroleum economy also realized the attachment developing. Furthermore, As Saudi's"preoccupied paternalism", which could made Saudi decide the 70's petroleum prices rising, and the execution of temperate petroleum policy by OPEC; led the economy cooperation of Arabic periphery countries, which had created the advantageous local economical environment. In addition, Saudi also got hold of the development opportunities. Under the statism development pattern, it had realized the petroleum nationalism and optimized the surplus capital, also positively advanced the petroleum economy foreign trade developing. Finally, these three synthetic reasons had formed Saudi's petroleum prosperity.