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Nayef Alshammari and Hanouf Aldhafeeri

Applied Econometrics and International Development, 2020, vol. 20, issue 1, 117-128

Abstract: This study investigates the patterns of developing the industrial sector in the case of Kuwait at the aggregate level as well as disaggregate level for the ten industrial sub-sectors. The data set covers the period from 2000 to 2015. The estimated model is tested using pooled OLS, fixed effects, random effects, and Hausman techniques. Main findings of the appropriate random effect approach show that labor productivity as well as the oil rent are main factors driving the industrial value added in Kuwait. In further examinations, oil prices are tend to affect positively the Petroleum and Natural Gas sector, whereas the impact tends to be negative on the Manufacture of Chemicals sector due to increase price of imported inputs. Other oil extensive industries do not show any significant impact of oil prices on their industrial value added. This suggests that patterns of industrial development may differ according to industry specific characteristics.

Keywords: Value Added; Industrial Sector; Productivity; Kuwait. (search for similar items in EconPapers)
JEL-codes: C33 D20 L60 (search for similar items in EconPapers)
Date: 2020
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