THE EVOLUTION OF THE KUWAITI FOREIGN TRADE STRUCTURE

Abstract

Kuwaiti foreign trade consists of exports and imports, where exports represent the largest part of the components of trade and that the value of total exports is higher than total imports, and the trade balance achieves a continuous surplus, which increased during the study period 2006-2018 from35billion dollars to about 70 billion dollars, with an annual average of 37 billion Dollars, oil represents about 93.3% of the total value of exports and exports increase at an annual rate of about $ 0.4 billion, while imports increase at an annual rate of about $ 1.6 billion annually, which is a high rate and more than the rate of increase in exports by about 400%, which led to a decline in the surplus in the trade balance. This is because the structure of exports depends on oil, which is affected by the global market in terms of students and world prices, which makes it subject to fluctuations. Agricultural trade in the foreign trade structure represents a percentage that does not exceed 3%, which is low. As for the structure of imports, it showed the continued increase in imports of productive goods, the stability of the ratios of imports of intermediate goods, and the decline in imports of consumer goods. As for the structure of exports, intermediate goods represent about 97% of the structure of exports and this is due to oil, while productive goods are 0.8% and consumer goods 2.4%. Research problem: Given the Kuwaiti economy’s dependence on the foreign trade sector to provide the cash and foreign currency resources needed for the various sectors and to provide food, and that the foreign trade sector depends on oil by about 93%, foreign trade is the financier of development and it is subject to fluctuations in the oil market, which affects the surplus rates of foreign trade Hence, it is necessary to make good use of the resources that achieve the provision of different commodities for the population. The study recommends diversifying production so that exports are diversified and not depend on a source only for export. Research objective : To study the structure of foreign trade in terms of: 1- Exports structure and development during the study period 2001-2018. 2- The import structure evolved . 3- The development of the foreign trade balance and the size of the surplus. 4- Examine the structure of exports by use. 5- Study the structure of imports by use. Research method: The research used statistical methods and general chronological trend equations to measure the development of both exports and imports, averages, ratios and some economic indicators. Conclusively, it notes the development of foreign trade and the change of its structure. Therefore, the research recommends continuing to change the structure and diversify it and reduce dependence on oil so that it is not exposed to income fluctuations and to ensure its stability.