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Volume :16 Issue : 1 2009      Add To Cart                                                                    Download

Structure of Effective Protection to Manufacturing

Auther : Zafar Mahmood
Mohammad S. Alenezi

Protection of the manufacturing industries in Kuwait is granted to protect them from foreign competition with the understanding that in the future they will be able to compete in the international market. The current structure of protection to industries is an amalgamation of various economic incentives given to the manufacturing industries for their development. This paper analyzes the collective impact of different policy measures (incentives) on the degree of protection that is granted to the manufacturing industries in Kuwait. Using primary and secondary data, the paper prepares estimates of effective rates of protection. These estimates are prepared for different industry groups, and according to different stages of industrial processing and market orientation of industries. The paper concludes by making a set of policy recommendations to further rationalize the structure of industrial protection in a future economic reform program.                                                                                                                             

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