Footnotes
1. See also El-Erian (1996) and IMF (1995).
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2. See Goldin, Knudsen, and van der Mensbrugghe (1993); and
Chabrier, El-Erian, and Moalla-Fetini (1995).
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3. See Azzam (1995a) and El-Erian and Kumar (1995).
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4. By some estimates, private capital flows to the GCC countries
have comprised 1-2 percent of total capital flows to all developing countries. See Bates (1994)
and Hovaguimian (1994).
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5. See Fischer, Rodrik, and Tuma (1993).
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6. Adjustment and reform policies in the GCC countries are also
discussed by Azzam (1995b).
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7. Employment policies are discussed in more detail below.
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8. Although in some other oil producing countries the share of
non-oil
revenue to GDP is comparable to that of GCC countries (e.g., about 9 percent in Indonesia and
Iran), the average revenue to GDP ratio in upper middle income developing countries is about 27
percent.
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9. Under the planned GCC tariff harmonization, rates would be
reduced
to a range of 4-8 percent for most imports. Currently, with a uniform tariff rate of 4 percent,
only the U.A.E. is in that range.
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10. Investment and growth policies and issues related to human
resource development are discussed in World Bank (1995a).
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11. As reported by Azzam (1995b), total capitalization in the
GCC
markets in 1994 was about US$67 billion, with Saudi Arabia accounting for 57 percent of the
total. Market capitalization in the GCC was equivalent to 35 percent of total GDP, compared to
50
percent in other developing countries.
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12. See Azzam (1995a) for a review of capital markets of the
GCC
countries.
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13. According to Ali (1995), the share of foreign workers in
total
labor force in the GCC countries varies from 40 percent in Bahrain to 83 percent in
Kuwait.
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14. See van den Boogaerde (1991).
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