provides the theoretical framework for the examination of the influence of Saudi Arabia's crude oil resource and the exploitation of that resource on the development of the country's economy and Saudi society.
Economic Growth and Development Defined
Economic growth is defined in positive terms as the rate of change in gross national product GNP (Gwartney, Stroup, and Studenmund, 1994, p. 793). Within this definition, a decline in GNP would be referred to as negative growth. There are two general types of economic growth. Extensive economic growth refers to an expansion of the total output of goods and services, regardless of the change in per capita output. Intensive economic growth refers to an increase in per capita output.
Development is a normative concept that encompasses economic growth, but which also includes structural and distributional changes which should lead to improvements in the living standard for a majority of an economy's population (Todaro, 1991, p. 87). Thus, if e
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