When Will the Islamic Century Begin?
Capital is in short supply in many -- especially oil poor -- Islamic countries partly because their governments do not work hard on attracting foreign direct investment. In fact, even if domestic capital is abundant, as it is the case with oil rich Libya and the Gulf States, the contribution to econ...
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| Published in | Middle East News Online |
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| Main Author | |
| Format | Newspaper Article |
| Language | English |
| Published |
Durham
Middle East News Online
03.04.2001
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| Online Access | Get full text |
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| Summary: | Capital is in short supply in many -- especially oil poor -- Islamic countries partly because their governments do not work hard on attracting foreign direct investment. In fact, even if domestic capital is abundant, as it is the case with oil rich Libya and the Gulf States, the contribution to economic growth remains limited since investment efficiency is rather low. As a result, increases in potential output are very small. What usually gives a big push to that output is high labour productivity and investment efficiency, but these are both missing, to a large extent, in oil rich Arab economies. |
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