The paper "Summary and Critique of Saudi Arabia and the Oil Market" is an outstanding example of a Macro & Microeconomics essay. This paper addresses Nakov and Nuno’ s (2013) “ Saudi Arabia and the Oil Market, ” an article published in The Economic Journal, which takes both quantitative and qualitative approaches to examine Saudi Arabia and the oil market. Paradigm assumptions are evident in the article. Nakov and Nuno’ s (2013) article focuses on the impact of the oil market on the Saudi Arabian economy, and the importance of Saudi Arabia to the international oil industry, in terms of its position in dominant and fringe production.
The article is based on secondary information to study Saudi Arabia as a dominant oil exporter and competitive fringe oil exporters, as well as economic models for estimating oil exports, market clearance, and balanced growth paths. The materials that the authors use were obtained from books, journals, and articles by other scholars. The article involves both qualitative and quantitative research theories. Nakov and Nuno (2013) base their study on a theoretical and conceptual framework and model that postulates that Saudi Arabia’ s position in the oil market cannot be underestimated.
The article also highlights the role of the Persian Gulf War of 1990-1991in Saudi Arabia’ s role in the oil market. To address the issues that Saudi Arabia is different from other producers and their spare capacity in oil production, the authors have used both quantitative and qualitative design. They also create a model for studying the effects of a proportional tax on oil consumption. In addition, Nakov and Nuno (2013)present graphics that display the failure of oil consumption tax in Saudi Arabia, global oil consumption taxes, dominant oil firms, domestic consumption of oil in Saudi Arabia, and international gains from importing Saudi Arabian oil.
They use a qualitative approach to support their arguments. They argue that evaluating the functions of Saudi Arabia in the global oil market is important to understanding international oil production issues. Research problem. The purpose of Nakov and Nuno’ s (2013) research is to study and analyze the impact of Saudi Arabian oil production on the global oil market and national economy. Energy is one of the most common needs of modern societies around the world.
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