Analysis of the Productive Performance of Intermediate Industries in United Arab Emirates (1986-1999)

Abstract

Historically the Arab Emirates of the Gulf depended on fishing and trade. With the emergence of oil production, economic patterns have developed. External trade elevated and the development of intermediate industries took place. The present paper analyzes the impacts of total labor productivity and efficiency in Oman State. As Gulf States, they have depended on oil production for their economic life for the past decades. However, they were typically known for traditional industries and trade, helped by long sea shores. Recent introduction of intermediate industries relative, labor productivity and technical changes in addition to available capital are important variables that help to develop a comprehensive economic structure to the country that can add to its oil revenues and help in promoting its real production sectors. Economic variables and factors of production, total production, total labor and available invested capital are utilized in the analysis. Time series data (1986-1999) were used to analysis improvements in the production patterns. The results of the analysis showed that there were improvements over time in total labor production and total labor efficiency. The results also showed increasing improvements in capital inputs and outputs. It is concluded that intermediate industries in Oman State are advancing in their economic potentials.