Sources of structural change within an inputoutput analysis framework : the case of Kuwait 1983-1995

Abstract EN

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.