trade
Why do the Swiss specialise in watchmaking, Japanese in denim or electrical equipment, and software in Silicon Valley? These are all examples of complex economic areas, but what makes them so?
Read MoreThe theory of Economic Complexity (EC) can be defined as the systems of knowledge and interactions which make up a country’s productive output. The Organisation for Economic Complexity (OEC) describes it best: “complex products, like medical imaging devices or jet engines, require vast amounts of knowledge that can only be accumulated in large networks of people”. In turn, the EC in such large networks requires a seemingly indefinite web of interactions between institutions, societies, and education among all else to contribute to the development of the economy.
Read MoreAs of 2019, Kuwait is a net exporter of goods, however, without oil, its surplus of KD 9.3bn drops to KD -8.5bn, making it a net importer. Kuwait’s trade profile is relatively simple, as crude petroleum and its related products make up almost the entirety of exports, which in turn affect total trade, irrespective of minor fluctuations in imported goods. This research structures the data on trade in Kuwait and takes a closer look at its evolution between 2010 and 2019. It begins with an overview of the trade balance, then focusing on imports and exports, and analysing China’s trade relationship with Kuwait. The evidence reveals the vulnerability of trade to fluctuations in one good, petroleum and its by-products, as well as the strengthening trade flows between the Gulf state and China. The findings have implications for trade policy and, more importantly, for diversification efforts.
Read MoreThe Gulf Cooperation Council (GGC), formed in 1981, is the founding step towards recognising the benefits of formal, regional trade relations. In fact, trade openness has been found to contribute to development and higher living standards. Kuwait, as part of the GCC, benefitted from preferential tariff treatment and strengthened cooperation with major industrial nations.
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