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Abstract

absorptive capacity. The ability of the oil-producing countries to spend internally or absorb their oil revenues. The concept emerged following the FIRST OIL SHOCK when oil revenues increased sharply and was linked to the RECYCLING problem. The implication was that oil producers with a low absorptive capacity would be unable to spend their revenues. This would reduce world levels of spending, thereby leading to a recession. In the event most countries designated as having a low absorptive capacity exhibited a remarkable ability to spend money, although how useful this spending was for the country’s development remains highly questionable. The producers usually identified as low absorbers are Saudi Arabia, Kuwait, the United Arab Emirates, Libya and Qatar.

Keywords

American Petroleum Institute Aviation Fuel Royal Dutch Shell Area Rental Product Quality Spec 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1988

Authors and Affiliations

  • Paul Stevens

There are no affiliations available

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