Why might there be such a large difference in the peer capita GDP of these specific countries of Southwest Asia (the Middle East) and North Africa
1. Natural resources: Some countries in Southwest Asia, such as Saudi Arabia and Qatar, have vast reserves of oil and gas, which contribute significantly to their GDP. In contrast, countries in North Africa may not have the same level of natural resources.
2. Economic diversity: Countries that have diversified their economies beyond oil and gas, such as Israel and Turkey, tend to have higher per capita GDPs. On the other hand, countries that rely heavily on a single commodity may have lower GDPs.
3. Political stability: Political instability can hinder economic growth and development, leading to lower per capita GDPs. Countries like Iraq and Syria, which have experienced ongoing conflicts and instability, tend to have lower GDPs compared to more stable countries.
4. Human capital: Investments in education, healthcare, and infrastructure can lead to higher productivity and ultimately higher per capita GDPs. Countries with well-educated populations, such as Israel and the United Arab Emirates, tend to have higher GDPs.
5. Economic policies: Countries with sound economic policies that promote investment, innovation, and entrepreneurship tend to have higher per capita GDPs. In contrast, countries with ineffective or corrupt economic policies may struggle to grow their economies and increase GDP per capita.
Overall, a combination of factors such as natural resources, economic diversity, political stability, human capital, and economic policies can help explain the large differences in per capita GDP among countries in Southwest Asia and North Africa.