Abstract of the Article

"The economic development of Saudi Arabia depends largely upon the receipts from the

exports of crude oil being spent as government expenditure on growth needs. Saudi Arabia is

included in the very high human development category of United National Development

Programme. Using time series data from 1990 to 2016, the study finds that both government

spending and oil exports are significant drivers of human development index (HDI) in Saudi

Arabia. The study estimates that a 100 (million barrels) increase in oil production will increase

the HDI with 4% point. Similarly, a 1% increase in total government expenditure increases 10%

point in HDI. The study also reports that expenditure on education contributes the most to HDI.

The study also finds an inverse relationship between health expenditure and economic growth.

This finding resulted in a recommendation of streamlining the health sector. Finally, the study

predicts that HDI index will be 0.94 by 2030" (Haque & Khan, 2018).

About the article and its purpose

The article I have chosen is extracted from the LIRN site, and the topic of the article is

"Role of Oil Production and Government Expenditure in Improving Human Development Index

(HDI): Evidence from Saudi Arabia". According to the United National Development Program,

Saudi Arabia has been in the very high human development. So, this article discusses the

economic development of Saudi Arabia that has been depending upon the exports of crude oil

and government expenditure that has been investing the amount received from export in the

growth needs for the nation. This article also portrays the high human development index of

Saudi Arabia. Likewise, it has provided the data that increases the HDI. The article also reports

that expenditure on education contributes the most to HDI, also finds an inverse relationship

between health expenditure and economic growth.

 Article supporting my argument

The statistical tool used to measure a country's overall achievement in its social and

economic dimensions is known as Human Development Index (HDI). The social and economic

dimensions of a country are based on the people's health, their education level attainment, and

their living standard. My argument is that various indicator of HDI like education would help in

increment of HDI by only few percent also. Likewise, the article supports my argument because

it shows the human development index of Saudi Arabia and how it empowers its people and

achieves the economic growth and human development.

Main aspect of the article

The main aspect of this article is to evaluate the crucial factors of HDI growth in Saudi

Arabia. Likewise, it emphasis the oil exports and government spending on different social,

institutional and health sectors such as spending on education, health, social security and other

economics and development indicators of the economy. The paper also highlights that economic

activities are significantly driven by the oil sector and it reveals that government spending has

greater effect on economic growth, followed by investment and export in the oil sector.

Finding and Conclusion

Thus, after reading the article I came to know that, the economic development of Saudi

Arabia has been depending upon the exports of crude oil which generates huge revenue and the

revenue generated by the export is directly invest on human development to further increase

HDI of the nation. Likewise, this article can be helpful for our CLA2 because in our CLA2 paper

we have to talk about the human development index of five countries and from this article I have

got the information of Saudi Arabia.

References
Malinowski, J. C., & Kaplan, D. H. (2013). Human Geography. New York: McGraw-Hill

Haque, I, M. & Khan, R, M. (November 24, 2018). Role of Oil Production and Government

Expenditure in Improving Human Development Index: Evidence from Saudi Arabia.

Retrieved from http: www.econjournals.com