Summary: | <p>The study aims at analyzing the effect of economic diversification on economic growth in Bahrain for the period (1980-2014). For this purpose, many indicators were developed using The <em>Herfindahl</em><strong>-</strong><em>Hirschman index</em><strong> (</strong><em>HHI</em>) and five variables: real GDP, exports, imports, government revenues and fixed capital formation. Results reveal a weak diversification in the Bahraini’s economy besides a positive effect of diversification on the economic growth in Bahrain. In fact, no significant relationship between Herfindahl index and the growth of real GDP.</p><p><strong>Keywords:</strong> Economic Diversification, Economic Growth, <em>Herfindahl</em><strong>-</strong><em>Hirschman index</em>.</p><p><strong>JEL Classifications:</strong> L25, O47</p>
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