Sources of Structural Change Within nn Input-Output Analysis Framework: The Case of Kuwait 1983-1995

Ahmed Al-Kawaz and Jamal Qasem

No 301, Working Papers from Economic Research Forum

Abstract: The state of Kuwait, like other developing countries, aims at diversifying its economy. This paper examines the sources of structural change as a means of diversification. An Input-output (I-O) decomposition analysis, among others, is used to cover the period 1983-1995. The results show that among these sources domestic demand plays a vital role, followed by export demand, import substitution, and technical change, respectively. Other indicators for testing structural change are used. These include: forward and backward linkages, and the share of consumer, intermediate, and investment activities in total manufacturing value added. The other two indicators also reveal modest structural change.

Pages: 18 pages
Date: 2003-02-01, Revised 2003-02-01
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Published by The Economic Research Forum (ERF)

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