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Saudi Arabia Studies

Added February 17, 2010
Type: Monograph
Do Oil Exports Fuel Defense Spending? Authored by Dr. Clayton K. S. Chun.
Rising oil prices facilitate the acquisition of greater resources and perhaps economic development. But oil revenues can also drive a government to finance massive military equipment purchases like Saudi Arabia did in 1979. The nature of governments that rely on raw material extraction and long-term development of military programs may affect how their current and future spending occurs regardless of oil prices. How nations decide to use their national wealth helps explain some of the perennial problems facing oil and commodity exporting nations and provides insights into their relations with other countries.
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