Economic Diversification in the GCC: Past, Present, and Future

Business & Finance, Economics, Money & Monetary Policy, Macroeconomics
Cover of the book Economic Diversification in the GCC: Past, Present, and Future by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal, INTERNATIONAL MONETARY FUND
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal ISBN: 9781498301688
Publisher: INTERNATIONAL MONETARY FUND Publication: December 23, 2014
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
ISBN: 9781498301688
Publisher: INTERNATIONAL MONETARY FUND
Publication: December 23, 2014
Imprint: INTERNATIONAL MONETARY FUND
Language: English

Abstract: The economies of the six Gulf Cooperation Council (GCC) countries are heavily reliant on oil. Greater economic diversification would reduce their exposure to volatility and uncertainty in the global oil market, help create jobs in the private sector, increase productivity and sustainable growth, and help create the non-oil economy that will be needed in the future when oil revenues start to dwindle. The GCC countries have followed many of the standard policies that are usually thought to promote more diversified economies, including reforms to improve the business climate, the development of domestic infrastructure, financial deepening, and improvements in education. Nevertheless, success to date has been limited. This paper argues that increased diversification will require realigning incentives for firms and workers in the economies—fixing these incentives is the “missing link” in the GCC countries’ diversification strategies. At present, producing non-tradables is less risky and more profitable for firms as they can benefit from the easy availability of low-wage foreign labor and the rapid growth in government spending, while the continued availability of high-paying and secure public sector jobs discourages nationals from pursuing entrepreneurship and private sector employment. Measures to begin to address these incentive issues could include limiting and reorienting government spending, strengthening private sector competition, providing guarantees and financial support for those firms engaged in export activity, and implementing labor market reforms to make nationals more competitive for private sector employment.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Abstract: The economies of the six Gulf Cooperation Council (GCC) countries are heavily reliant on oil. Greater economic diversification would reduce their exposure to volatility and uncertainty in the global oil market, help create jobs in the private sector, increase productivity and sustainable growth, and help create the non-oil economy that will be needed in the future when oil revenues start to dwindle. The GCC countries have followed many of the standard policies that are usually thought to promote more diversified economies, including reforms to improve the business climate, the development of domestic infrastructure, financial deepening, and improvements in education. Nevertheless, success to date has been limited. This paper argues that increased diversification will require realigning incentives for firms and workers in the economies—fixing these incentives is the “missing link” in the GCC countries’ diversification strategies. At present, producing non-tradables is less risky and more profitable for firms as they can benefit from the easy availability of low-wage foreign labor and the rapid growth in government spending, while the continued availability of high-paying and secure public sector jobs discourages nationals from pursuing entrepreneurship and private sector employment. Measures to begin to address these incentive issues could include limiting and reorienting government spending, strengthening private sector competition, providing guarantees and financial support for those firms engaged in export activity, and implementing labor market reforms to make nationals more competitive for private sector employment.

More books from INTERNATIONAL MONETARY FUND

Cover of the book The Special Data Dissemination Standard: Guide for Subscribers and Users by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Government Reform in New Zealand by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Strategies for Structural Adjustment: The Experience of Southeast Asia, papers presented at a seminar held in Kuala Lumpur, Malaysia, June 28-July 1, 1989 by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Regional Economic Outlook: Asia and Pacific, May 2009 by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book From Ambition to Execution by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Finance & Development, June 2012 by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Economic Dislocation and Recovery in Lebanon by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Globalization Facts and Figures by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Role of the Legislature in Budget Processes (EPub) (PDF Download) by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book IMF History Volume 3 (1945-1965) by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Optimum Currency Areas:New Analytical and Policy Developments by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Capital Flows in the APEC Region by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Building on Progress: Reform and Growth in the Middle East and North Africa by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Access to Trade Finance in Times of Crisis by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
Cover of the book Finance & Development, March 1997 by Tim Mr. Callen, Reda Cherif, Fuad Hasanov, Amgad Mr. Hegazy, Padamja Khandelwal
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy