Study On Export Diversification And Economic Growth In Oman

The aim of this study is to empirically assess how Oman can diversify from its dependence on oil sector as its source of both domestic and foreign revenue.Also to examine how diversification transform and promote export and economic growth of Oman.The study will use time series data for Imports,Exports,GDP,Gross Capital Formation and Population growth for the period from 1990 to 2014,sourced from World Bank Website.We employed Augmented Dickey Fuller(ADF)Unit Root Test to assess if the data is stationary co integrated and using it to impact of export diversification of economy of the country and add to the empirical.We also employed Granger Causality to check if the data is co integrated.Finally,we run our regression using Vector error correction model and HHI index to estimate the results and determine the effects of export diversification and possible factors that affect it on economic growth.Praise Oman government for good governance and economic stability,due to the fact that Oman was considered among the poor countries before the discovery of oil,and now is regarded as one of the high-income countries,however,are masking weak economic points,especially in a country that relies heavily on oil export revenues as a primary,despite the fluctuations in oil prices and the presence of oil reserves,compared with the Gulf Cooperation Council(GCC),which are Oman,Qatar,Kuwait,Bahrain,UAE,and KSA,and estimated oil reserves in Oman by the British statistics from 20 to25 years in the case has not discovered a new oil field.Since the diversification of exports is qualitative in nature and can be achieved through policy reform,and affected this study theoretical study of trade policy to Oman coincided with reliable statistical information from its databases.Assess exports of Oman structure reveals areas of interest imposed,theoretical analysis of the crisis worker to diversify its exports,which have been collected from various fields,including the size of the country and the quality of institutions and governance,and the location of the market size,etc.In addition,the experiences of other resourcerich countries,such as state United Arab Emirates,Malaysia,Chile.Results we found that export diversification plays significant roles to economic growth in Oman and indicate that the Oman government should pay attention to the environment,business investors,and the rule of private sector finance especially for SMEs in the country,which accounts for 90 percent of the private sector,the incentives and facilities and business skills and software export control system for the country to become an enabling environment that will facilitate the diversification process exports.In addition,the government should focus on other sectors is far from the oil sector,such as services,tourism,transport,agriculture,and fisheries sector in the country,and the Omani government must develop long-term strategies and implementation of institutional reforms that promote exports diversification in the country.