The Potential Role of Exports-Imports in Income Diversification and Sustainable Development of Kuwait
DOI:
https://doi.org/10.34120/ajas.v29i1.1111Keywords:
Exports, Imports, Diversification, Growth, TransformationJEL Classification:
F140, O24, O38Abstract
This paper uses a CEO survey of exporting and importing firms with regards to the effect of exports and imports on growth. The majority of CEOs think that exports have a positive effect on economic growth through increased investment and imports. The literature suggests that relationship between exports and growth is reciprocal. Exports have a positive effect on economic growth through increased investment and imports, while economic growth leads to export expansion and diversification by increasing imports used as inputs for exports.
This paper utilizes a field survey of CEOs from export-import firms to explore the trade-diversification-growth nexus and address Kuwait's goal of economic diversification from the perspective of firm CEOs.
The answers were given by 154 CEOs of exporting-importing companies in Kuwait to the 46 questions drawn from the Public Authority of Industry records. Most CEOs believe that manufactured exports and imports contribute to Kuwait's economic diversification and drives to attract skilled labor. Exporting firms have an edge in terms of innovation. Most CEOs appreciate the role of exports and imports in enhancing the use of technology in their business operations.
Capture the perspective of the private sector on the effect of export-import on growth relationship in Kuwait.
Effective national policies can help firms to swiftly export their products and can direct them to high value-added niches. Innovative firms are the engine of economic growth, and the majority of these firms are exporters. Therefore, an effective national innovation system can contribute to the success of those firms.
JEL classification: F140, O24, O38
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