Economic Diversification in Bahrain

• Main Authors: Rami Mohammad Abu Wadi, Ala' G. Bashayreh
• Format: Article
• Language: English
• Published: EconJournals 2018-07-01
• Series: International Journal of Economics and Financial Issues
• Online Access: https://www.econjournals.com/index.php/ijefi/article/view/6603

<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>