Effects of Oil Production on Population Growth in Saudi Arabia

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Some results of the related study in other countries have shown a significant relation between per capita GDP growth rate and fertility rate statistic. Thus, our main objective is to test whether there is a causal relationship between fertility rates and oil production. Additionally, it fills the research gap in the oil price-output literature related to the Saudi Arabia.

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TitleNameInstitutionDate1IntroductionDetermining whether the continuous production of extractive commodities promotes or inhibiteconomic development remains as one the persistent questions in the field of developmenteconomics. Oil production remains one of the lucrative commodities to in the economic worldwith oil producing countries experience positive economic returns most of the time from oilmarketing or exports of crude and refined oil products. The main belief that as the societiesbecome more urban and industrialized, and the introduction of technology sets into the economicand social life, then the birth rate will go down. According to the socio-demographic theory, itsounds reasonable to create the assumption that, under the similar condition Saudi Arabia birthrate will have already declined. However, countries like Iran which produce oil production haveregistered high fertility rates among the underdeveloped countries. Therefore, deviation fromcloser socio-demographic theory requires deeper studyThere exist three lines of thoughts in consideration of the relationship between fertility andeconomic development. The first line contends that economic development slows down fertility.This view seems well articulated in the demographic transition theory, which asserts that thepopulation processes of a country rely on its industrialization platform and, by the latter, on itseconomic development level. The second line of thought implies that economic
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