Saudi Journal of Economics and Finance (SJEF)
Volume-4 | Issue-02 | 72-76
Review Article
An Analysis of Economic Diversification of Middle Eastern Countries
Mushtaq Ahmad Malik, Tariq Masood
Published : Feb. 29, 2020
Abstract
Economic diversification entails the process of reducing dependence on single source of income or output generation. The basic idea behind economic diversification, therefore, is to develop the kind of diverse sectors that make significant value addition in an economy rather than relying on a single sector. It is in this backdrop that the present study is articulated to shed light on the pattern of economic diversification among the countries of the Middle Eastern region. The present paper employed two measures of diversification such as share of employment and value added of a particular sector in Gross Value Added over the period 1970-2016. The study has found that the region as a whole is witnessing economic diversification in terms of both the criterions at a moderate speed. Dynamic tradeable sectors should be developed in order to enhance the pace of economic diversification to strengthen macro-economy.