Sources of Structural Change Within an Input-Output Analysis Framework: The Case of Kuwait 1983-1995 - Economic Research Forum (ERF)

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.


Policy Affiliates

Ahmed Al-Kawaz

Ministry of Finance, Economic Adviser

Jamal Qasem



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