Author : Jiayang (Amy) Qin*
Sage Hill High School, Newport Beach, California, United States of America
Despite their geographical proximity, the two countries of Saudi Arabia and Israel embody growing economic differences. The dominant explanation for this division relies on their natural resources and production focuses and is unable to provide more coherent explanations from the social and historical aspects — key distinguishers of the two’s economic development. We used data from the World Bank along with the Solow Model to evaluate a) the per capita income and b) economic development over time. Contrary to others’ assumptions, we concluded that Israel has more relative economic potential, and their division of practice lies in its past historical economy. Our research recommends a shift in labor practices and developmental focuses for Saudi Arabia to generate more economic momentum in the long run.