Abstract
The research probes the implications of globalization and domestic economic liberalization for small-scale industries and analysis its growth performance. The research concludes with policy recommendations to ensure the sustenance and competitive growth of small-scale industries in Jordan. Results of the study show that the growth of small scale industries in Jordan in terms of units, employment, output and exports has come up due to globalization, domestic liberalization and dilution of sector specific measures. The government should involve the private sector in the development of infrastructure, to enable efficient monitoring and good facilities to the small scale industries. There is a need to create fund at the government level for disbursement as margin money through district industries centers to small scale industries units to encourage them to undertake technological innovations. A technological vibrant, internationally competitive small scale industries sector should be encouraged to emerge, to make a sustainable contribution to national income, employment and exports.
Highlights
Small scale industry sector occupies a place of strategic importance in Jordanian economy structure due to its considerable contribution in terms of output, exports and employment
Small scale industries sector was a major contributor to the industrial economy of Jordan
What are the future prospects of small scale industries in Jordan in the era of globalization? What steps need to be taken to strengthen small scale industries to ensure its sustained contribution to Jordanian economy?
Summary
Small scale industry sector occupies a place of strategic importance in Jordanian economy structure due to its considerable contribution in terms of output, exports and employment. Small scale industries play a key in the industrialization and development of a country. Small scale industries sector was a major contributor to the industrial economy of Jordan. It accounts for 50% of the total manufacturing sector, has 20% share in exports and provides 80% of employment in industrial sectors[10]. Small scale industries world over including Jordan were facing the on slight of the adverse effects of globalization in the stringent requirements of quality costs, tight delivery schedules and productivity[1]
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