Content uploaded by Ammar Aamer
Author content
All content in this area was uploaded by Ammar Aamer on Jan 03, 2017
Content may be subject to copyright.
Journal of Academic Research
in Economics
Volume 7 Number 1 March 2015
ISSN 2066-0855
EDITORIAL BOARD
PUBLISHING EDITOR
DRAGOS MIHAI IPATE, Spiru Haret University
EDITOR-IN-CHIEF
CLAUDIU CHIRU, Spiru Haret University
ASSISTANT EDITOR
GEORGE LAZAROIU, Contemporary Science Association
INTERNATIONAL ADVISORY BOARD
JON L. BRYAN, Bridgewater State College
DUMITRU BURDESCU , University of Craiova
MARIN BURTICA, West University Timisoara
SOHAIL S. CHAUDHRY, Villanova School of Business
DUMITRU CIUCUR, Bucharest Academy of Economic Studies
LUMINITA CONSTANTIN, Bucharest Academy of Economic Studies
ANCA DACHIN, Bucharest Academy of Economic Studies
MANUELA EPURE, Spiru Haret University
LEVENT GOKDEMIR, Inonu University
EDUARD IONESCU, Spiru Haret University
KASH KHORASANY, Montreal University
RAJ KUMAR, Banaras Hindu University, Varanasi
MARTIN MACHACEK, VSB-Technical University of Ostrava
COSTEL NEGREI, Bucharest Academy of Economic Studies
ABDELNASER OMRAN, Universiti Sains Malaysia
T. RAMAYAH, Universiti Sains Malaysia
ANDRE SLABBERT, Cape Peninsula University of Technology, Cape Town
CENK A. YUKSEL, University of Istanbul
MOHAMMED ZAHEERUDDIN, Montreal University
LETITIA ZAHIU, Bucharest Academy of Economic Studies
GHEORGHE ZAMAN, Economics Research Institute, Bucharest
PROOFREADERS
MIHAELA BEBESELEA, Spiru Haret University
CAMELIA BOARCAS, Spiru Haret University
ONORINA BOTEZAT, Spiru Haret University
MIHAELA CIOBANICA, Spiru Haret University
CRISTINA CIOTE, Spiru Haret University
DANIEL DANECI, Spiru Haret University
MIHNEA DRUMEA, Spiru Haret University
PAULA MITRAN, Spiru Haret University
LAVINIA NADRAG, Ovidius University Constanta
OCTAV NEGURITA, Spiru Haret University
RALUCA PACURARU, Spiru Haret University
IULIANA PARVU, Spiru Haret University
LAURA PATACHE, Spiru Haret University
MEVLUDIYE SIMSEK, Bilecik University
GEORGIANA SUSMANSCHI, Spiru Haret University
ADINA TRANDAFIR, Spiru Haret University
MIHAELA TUROF, Spiru Haret University
Contents
HOW DO THE RICHEST 1% OWN 50% OF GLOBAL WEALTH IN
AN INTEGRATED WALRASIN-GENERAL- EQUILIBRIUM AND
ONIKI-UZAWA’S TRADE THEORY
WEI-BIN ZHANG
7
DO ESTATE TAX RATES REALLY AFFECT CHARITABLE
BEQUESTS? A REGRESSION MODEL ANALYSIS OF ESTATE
DISTRIBUTIONS
JOHN E. DEXTER JR.
SCOTT E. MILLER
45
ASSESSING THE IMPACT OF THE LABOUR MARKET
DETERMINANTS IN ATTRACTING FDI
OANA CRISTINA POPOVICI
59
EFFECTIVENESS OF PUBLIC PRIVATE PARTNERSHIPS
PROCUREMENT FOR SUSTAINABLE DEVELOPMENT OF WATER
SUPPLY PROJECTS IN NIGERIA
ABDULLAHI NAFIU ZADAWA
ABDELNASER OMRAN
ALHASSAN DAHIRU
73
IS THE PRICE ONLY MOTIVATION SOURCE TO PURCHASE
COUNTERFEIT LUXURY PRODUCTS?
NİL ENGİZEK
AHMET ŞEKERKAYA
89
MANUFACTURING IN YEMEN: CHALLENGES AND OBSTACLES
AMMAR MOHAMED AAMER
119
REMITTANCE-INDUCED OUTPUT GROWTH IN BANGLADESH:
AN EMPIRICAL STUDY
ABDULLAHUL MAMUN
SHAHANARA BASHER
143
BARRIERS AFFECTING THE PROJECT MANAGERS’
COMPETENCIES IN THE NIGERIAN CONSTRUCTION INDUSTRY
ABDELNASER OMRAN
SALIHU JARMAJO
154
MANUFACTURING IN YEMEN: CHALLENGES
AND OBSTACLES
AMMAR MOHAMED AAMER
1
Sana’a University, Faculty of Engineering, Yemen
E-mail: dr.ammar.aamer@gmail.com
Abstract
Yemen is facing economic issues that hinder its development compared to neighboring
countries. The purpose of this paper is to explore the manufacturing sector, and contribute
to the very limited literature on manufacturing in Yemen, due to its important role in the
future development of the economy in Yemen. Analysis and discussion on obstacles and
challenges as well as competitive priorities facing manufacturing in Yemen are presented.
The paper concludes with practical recommendations to improve the manufacturing sector
contribution to the economy development and pro-poor strategy initiated by the government
of Yemen.
Keywords: manufacturing, industrialization, Yemen, pro-poor economy, federalism,
industrial zones.
1
Ammar Mohamed Aamer, Ph.D.
Sana’a University, Faculty of Engineering
3 Jamal Street, P.O.Box 4663
Sana’a, Yemen
Phone: +967777149810
Email: dr.ammar.aamer@gmail.com
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
119
1. INTRODUCTION
Industrialization plays a great role in many economies’ development, yet
the Yemeni industrial sector contribution to economic growth is very low. The
Government of Yemen (GoY) has ambitions to increase the contribution of
manufacturing to encourage poverty reduction. These ambitions were spelled out in
Yemen Strategic Vision up to the year 2025 in the Poverty Reduction Strategy
Paper (PRSP) 2003-2005 (Ministry of Planning and Development, Republic of
Yemen, 2001). This requires a clear understanding of the current manufacturing
reality to lay out the ground for future industry planning and development to
achieve these ambitions.
This paper was inspired by a manufacturing study conducted by the author
for the United Nation Development Program (UNDP) as a chapter in a Diagnostic
Trade Integrated Study (DTIS). The DTIS study was funded by the Enhanced
Integrated Framework (EIF) program for trade-related assistance for Least
Developed Countries (LDC). The purpose of this paper is to contribute to the very
limited literature on industrialization in Yemen, and increase understanding of the
current state of manufacturing in Yemen due to its important role in the future
development of Yemen economy. More specifically, this paper explores the current
obstacles and challenges facing manufacturing in terms of key and emerging issues
such industrial zones, implications of federalism, importance of backward and
forward economic linkages, potential for synergies with other sectors, and
regulatory and institutional constraints. This paper set the stage for future
explanatory research needed in manufacturing in Yemen.
a. Background
In the early seventies, the Yemeni economy had relatively gone through
decent recovery in all areas of the economy. The government of Yemen took
actions to develop plans, policies and programs that aimed to support and
encourage the industrial sector. The government encouraged the private sector and
expatriates investment in the industrial sector. Hence, industrial establishments
began in producing goods for the domestic market and accommodate the growing
number in the labor force. This development was a result of the support given to
the industrial sector by the government in protecting local products. This protection
was by imposing import restrictions and high tariffs customs on foreign goods.
This encouraged the local industrial sector to grow and develop with low
competition during that period until the early nineties. In 1995 the GoY liberated
foreign trade, lifted the restrictions on the import licenses, and reduced tariffs.
Accordingly, the industrial sector has faced many problems and difficulties that
have hampered its growth and development due to its weak base structure and low
productivity. The Yemeni industry was unable to cope with the change resulting in
higher production costs and the inability to compete with higher quality and lower
cost foreign goods, which forced some establishments to go out of business.
However, according to the Poverty Reduction Strategy Paper (Republic of Yemen ,
2002), the industrial sector will be a major source of economic growth over the
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
120
VOLUME 7 NUMBER 1 MARCH 2015
forthcoming years, whereby it is expected that manufacturing will grow by an
average of 6.2 percent over the period 2003–05.
b. Research Problem
Currently, the government of Yemen relies heavily on Oil and Gas as its
main resource for revenue. Oil and Gas sector has been the major source of
revenues and foreign exchange for the government of Yemen (WB, 2002). Given
that oil reserve is depleting and oil production is declining, the GoY is facing many
economic challenges and forced to diversify its sources of revenue. The GoY plans
to place more emphasis on other promising sectors such as manufacturing, as it is
laid out on the PRSP. Thus, an understanding of the current manufacturing status
will help identify the gaps and help the GoY to plan on how to bridge these gaps
and get to the desired state.
c. Research Questions
This paper addresses the main question of “What is the reality of
manufacturing in Yemen?” by answering the following subsequent questions:
What is the current state of manufacturing in Yemen?
What are the current challenges facing manufacturing in Yemen?
What are the main strengths, weaknesses, opportunities, and threats
facing manufacturing development in Yemen?
2. LITERATURE REVIEW
a. Previous Work
The literature of manufacturing in Yemen is very limited. No evidence of
publication in the area of Yemeni industrialization except for reports conducted by
international organizations such as the World Bank and United Nations. The
following sections present a review of the reports and the limited available
literature of manufacturing in Yemen.
The first study found in the literature was the World Bank country report of
2002. The World Bank conducted a study on the economic growth in Yemen
across several sectors including manufacturing (WB, 2002). The main objective of
the study was to pinpoint available resources in the country and some of the
obstacles and constraints faced the economic growth in the country. One of the
chapters in the report focused on the industrial sector in Yemen. The
manufacturing chapter presented a review of the Yemeni manufacturing sector at
that time. The study concluded with obstacles such as poor incentive framework
and weak institutions hampered manufacturing activities, weak infrastructure and
high production costs, and weak legal and judicial systems do not encourage
industrial activities. Even though the report presented valuable information about
manufacturing in 2002, yet it did not touch on emerging factors such as federalism,
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
121
and had limited exposure to the importance of industrial zones for local
manufacturers.
To help Yemen be prepared for the accession to the WTO, an
industrialization development report in 2002 was funded by the UNDP (UNIDO,
2002). In its report entitled “Sustaining Competitiveness in Global Markets –
Preparing Yemen for WTO Accession”, the UNIDO presented an industrialization
development program to improve the Yemeni manufacturing capacity and help
improve the manufacturing sector. An emphasis was placed on fish and honey
industry. The study presented good analysis of the manufacturing sector at that
time, yet there are shortcomings in terms of manufacturing analysis and out of date
findings that need to be reconsidered.
Another study on manufacturing was reported by the UNDP in 2003
(UNDP, 2003). The Diagnostic Trade Integrated Study (DTIS 2003) was
conducted on six-sector analyses one of which was manufacturing. The
manufacturing sector chapter discussed manufacturing in general. The study was
based on extensive sector work conducted by the World Bank through 2002.
However, the 2003 DTIS report did not provide extensive analysis on the
manufacturing sector. The chapter on manufacturing was limited to only 4 pages
with a brief background on manufacturing, very general challenges, and yet good
solutions to some of the manufacturing obstacles.
In 2005, the Mitsubishi Research Institute conducted a country study on
enhancing Yemen export (Mitsubishi Research Institute Inc., 2005). The study
focused on developing exports for non-oil sectors such as agricultural, fishery,
building stone, and manufactured export. The research concluded with three main
categories for improvement which were policy reforms, exporters’ assistance, and
strengthening the public and private institutions. The study presented a thorough
analysis of export side of Yemeni manufactured products and the recommendations
for other potential export products. Some of the recommendations and data in this
study are out of date in light of recent changes.
In 2006, the UNDP conducted another study on Macroeconomic Policies
for Growth, Employment and Poverty Reduction in Yemen (UNDP, 2006). The
study again touched on different sectors of the country in attempt to help the
government of Yemen to work toward a proper policy reform. A section of the
study was dedicated for manufacturing. However, the manufacturing section was
very limited in its analysis.
Mahdi presented a compilation of different topics on Yemen in his book
entitled “Yemen into the Twenty-First Century: Continuity and Change”. One of
which was Almutawakel chapter on manufacturing where he stressed on the
importance of manufacturing in the economy of Yemen (Almutawakel, 2007).
Almutawakel presented a good analysis about the current status of manufacturing.
However, most of the focus in the analysis of his chapter was on the economic
impact of manufacturing and how it plays a great role in the economy
development. Some of the main issues mentioned in his chapter included the
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
122
VOLUME 7 NUMBER 1 MARCH 2015
following; weak institutional support led to poorly prepared projects and lack of
follow-up plans.
Colton discussed the economic development in Yemen after 1970 and
argues on the near collapse of the Yemeni economy due to its dependence on
international aid (Colton, 2010). The article however, did not focus on
manufacturing in its discussion as one of the pillars in the Yemeni economic
development.
Mann and Sultan presented a study entitled “Program Design for the
Industrial Modernization & Upgrading Program of Yemen” (Mann & Sultan,
2010). The study was a result of a study funded by the German Agency for
Technical Cooperation GmbH (GTZ) to help the ministry of Industry and Trade in
Yemen to establish industrialization development program. The reports presented a
detailed strategy on how the government of Yemen should do to improve the
industrial base in Yemen. The industrial modernization program included three
components Capacity Building at the Ministry of Industry and Trade (MOIT),
Upgrading of Manufacturing Businesses and Business Service Providers, and
Development of a Network of Business Incubators. However, the reports did not
elaborate on the issues rather presented a roadmap to solve the industry issues at
the time.
Alhammadi presented a study on the determinants of small enterprises
growth performance in manufacturing and service sectors in Yemen (Alhammadi,
Shahdan, Berma, & Ramlee, 2013). This paper is the first empirical paper found in
the literature that addressed the issues of manufacturing. However, the paper based
the research on previously defined factors, found in the literature, and tested them
in a survey conducted on small enterprises in Yemen. There was no thorough
analysis of the current status of manufacturing in Yemen.
After going through the available literature on manufacturing in Yemen,
one could argue that the literature on industrialization in Yemen is very limited.
Brehony and Al Sarhan stated that “there are excellent scholarly studies on the
politics, religion and social structures but almost none on the economy. As
Yemenis seek to build new structures, this is the time for scholarly analysis of its
evolution” (Brehony & Al Sarhan, 2014). This calls for an urgent need from
scholars, especially local researchers, to bridge this gap and enrich the literature
with more studies on the Yemeni manufacturing sector. There is a need for a
holistic evaluation of the industry in Yemen to the help the country gets out of its
poor economic and political instability and achieves its strategic goals.
b. Conceptual Framework
One could argue that this paper should be categorized under
industrialization of a nation rather than manufacturing. Therefore, it is important to
understand that industrialization and manufacturing are related before going into
further details. Industrialization is defined as the establishment of a modern,
integrated, urban-based manufacturing sector (Kirkpatrick, 1983). In this paper, the
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
123
author is concerned with manufacturing and the terms “manufacturing” and
“industry” are used interchangeably throughout this paper.
Industrialization strategy in any country could follow any of two main
categories. That is Import-substituting industrialization strategy (ISI) or Export-led
industrialization strategy (ELI). ISI is defined as manufacturing for domestic
market what was imported. ELI means manufacture to export internationally,
which is export oriented strategy (Kirkpatrick, 1983). Researchers in the
industrialization literature have proved the failure of the ISI industrialization
strategy in many countries in the past such as Brazil, Argentina, Pakistan, and
Indonesia (Nixson, 1996). Emerging economies, such as Singapore and Hong
Kong, had adopted the ELI strategy to capitalize on the globalization and the
comparative advantages of countries to tap into the global trade benefit. This
indicates the importance for a troubled economy, such as in Yemen, to move
toward the ELI industrialization/manufacturing strategy.
It is evident from the literature that Yemen has been attempting to move
toward the ELI industrialization strategy but it has not been successful. There is a
great amount of work that has to be done by the government and local
manufacturing firms to strategically move toward ELI. This paper addresses the
hypothesis of Yemen has no competitive priorities in the manufacturing sector to
move toward an ELI strategy. Also, the paper examines the hypothesis of Yemen
does not have an industrial base to move to the ELI strategy due to many obstacles
caused by the government and firms themselves. The next section presents the
methodology used in testing the aforementioned hypotheses.
3. METHOD OF DATA COLLECTION AND ANALYSIS
a. Methodological Approach
Mixed methods (qualitative and quantitative) were utilized in this research.
Given that this paper aims to provide an understanding of the manufacturing reality
in Yemen where there is a very limited literature on the subject, the mixed
approach fits the overall research design (Cooper & Schindler, 2011). The mixed
approach addressed the research problem and questions to explore obstacles and
challenges facing Yemeni manufacturing. The qualitative approach was used to
explore variables affecting the development of manufacturing in Yemen from
various stakeholders’ perspective. Stakeholders include government and private
sectors as well as international donors. In addition, the quantitative approach was
used to utilize existing industrial survey database and presents descriptive analysis
to understand the current situation of manufacturing in Yemen.
b. Sampling and Methods of Data Collection
The population selected for the study included involved Yemeni
government and private sectors as well as international donors and stakeholders.
Below is a list of contacted stakeholders:
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
124
VOLUME 7 NUMBER 1 MARCH 2015
United Nation Development Program (UNDP)
International Finance Corporations (IFC)
World Bank (WB)
German Agency for Technical Co-operation (GTZ)
Ministry of Industry and Trade (MoIT)
Ministry of Planning and International Cooperation (MoPIC)
Central Statistical Organization (CSO)
Yemen Standardization Metrology and Quality Control Organization
(YSMO)
Chamber of Commerce and Industry (Capital Secretariat)
Yemeni Industrialists Association
General Authority for Investment (GIA)
Selected manufactures in Sana’a and Taiz
Different data collection methods were employed. Initially, archival
research was used to retrieve previous reports and existing industrial survey data
about manufacturing. The first stage of the analysis involved reviewing existing
limited reports and literature of the manufacturing in Yemen. The researcher
contacted via phone and emails all of the aforementioned stakeholders. Reports
were retrieved from governmental and international organization databases and
were used to generate descriptive statistics analysis of manufacturing status in
Yemen.
The second data collection method used was informal interviews. A list of
all stakeholders was obtained from the Ministry of Industry and Trade (MoIT). The
researcher contacted all previously mentioned stakeholders and informal interviews
were conducted using convenient sampling. Participants were selected from each
organization based on their knowledge and direct involvement in manufacturing.
One to three representatives were selected from each organization to be
interviewed. Several informal interviews were conducted at the different regulatory
authorities, public and private manufacturing firms. The interviews took place in
the capital of Yemen Sana’a and the city of Taiz where each session lasted between
one to two hours. The informal interview questions entailed unstructured open
ended questions about manufacturing issues and potentials. During the informal
interviews, supporting documents were provided to the researcher.
With the purpose of including a variety of perspectives from most of the
stakeholders, informal interviews were also conducted with international donors.
The informal interviews targeted specialists of each international organization in
Sana’a. The informal interview technique allowed deep and multifaceted
exploration of the specialists and experts perspective on the current manufacturing
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
125
activities and projects. The researcher did not tape the interview but took notes
instead to put the interviewee at ease when answering the questions.
The third method employed was field observations. Given the security
issues in the country, convenient sampling was used to visit six factories in Sana’a
and four in Taiz. The field observations allowed the researcher to verify the
information collected in the informal interviews. The field observations entailed
visiting several local manufacturing facilities located in Sana’a and Taiz, the
highest industrial locations in Yemen. The researcher recorded notes and took
photos for documentation. One could argue that this is one of the limitations to the
data collection in this study. More geographical regions in the country should have
been included in the study. Even though the cities of Sana’a and Taiz contribute to
the highest percentage of factories in Yemen, this research should entice future
quantitative research and surveys to further investigate obstacles of manufacturing
in different regions.
4. DATA ANALYSIS AND DISCUSSION
This section presents the results of the methods employed in collecting
data. In particular, it presents a detailed discussion of the research questions.
a. Current State of Manufacturing in Yemen
According to the central bank, at constant market prices, the manufacturing
sector registered a growth rate of 7.2% in 2012, compared to a decline of 13.5% in
2011, resulting in an increase of its contribution to GDP from 5.4% in 2011 to
5.6% in 2012 (Central Bank of Yemen, 2013). This improvement could be due to
the industry recovery from the 2011 country’s instability due to the 2011 uprising
in Yemen but not necessarily due to the sector improvement. Figure 1 presents a
trend of the manufacturing contribution to the GDP and the GDP growth rate for
the period of 2008-2012.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
126
VOLUME 7 NUMBER 1 MARCH 2015
Figure 1. Manufacturing growth rate and GDP contribution 2008-2012
The manufacturing establishments are located in main populated cities.
That is in Sana’a (19%), Taiz (14%), Ibb (11%), Hadhramout (8%), Hodeidah
(7%), and Aden (3%). There is a clear fluctuation in the percentage of
establishments in each governorate. It is very important to point out here to the low
percentage of industrial establishments in two very strategic portal governorates
namely; Aden and Hodeidah. The main factor that affected the low percentages is
the centralization of the decision making. Most of the government agencies are
located in the capital (Sana’a), which contributed to weak autonomy by local
governorates authority. It is expected that federalism and the new provinces
distribution will disseminate autonomy and regional authority. Table 1 presents the
manufacturing enterprises in Yemen by region (Central Statistical Organization of
Yemen, 2013).
2.72%
5.54% 5.50%
-13.50%
7.20%
4.78%
5.06% 5.10%
5.40%
5.60%
2008 2009 2010 2011 2012
Growth Rates GDP contribution at constant market prices
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
127
Table 1. Manufacturing enterprises in Yemen by region
Rank
Small
Medium
Large
V. Large
Total
%
1
Capital Secretariat
5,843
1,239
324
91
7,497
19%
2
Taiz
4,830
443
111
1
5,385
14%
3
Ibb
4,085
198
36
3
4,322
11%
4
Hadhramout
2,665
301
85
3
3,054
8%
5
Hodeidah
1,962
527
130
4
2,623
7%
6
Thamar
2,653
119
22
14
2,808
7%
7
Amran
1,330
63
8
-
1,401
4%
8
Al Bayda’
931
59
231
46
1,267
3%
9
Hajjah
937
72
22
36
1,067
3%
10
Shabwah
1,009
83
19
37
1,148
3%
11
Sa’dah
1,272
68
13
2
1,355
3%
12
Sana’a
1,043
35
12
7
1,097
3%
13
Aden
919
289
87
1
1,296
3%
14
Lahij
928
60
10
3
1,001
3%
15
Abyan
562
59
10
5
636
2%
16
Al Thal’a
805
53
1
-
859
2%
17
Al Jouf
291
9
7
42
349
1%
18
Ma’rib
387
34
9
-
430
1%
19
Al Mahweet
525
3
7
-
535
1%
20
Al Mahrah
121
24
17
295
457
1%
21
Raymah
459
3
-
-
462
1%
Total
33,557
3,741
1,161
590
39,049
100%
%
85%
10%
3%
2%
100%
In 2001, the total number of manufacturing and mining establishments
reached to 43,337. As classified by the Central Statistical Organization (CSO), of
these enterprises 0.6 percent are very large establishments (of more than 24
workers), 2.06 percent are large establishment (10-24 workers), 8.8 percent are
medium scale (5–9 workers), and the rest around 88.54 percent are small scale (1-4
workers). Table 2 shows that most establishments (almost half) are involved in
food processing. Other products include construction, clothing, woodwork and
furniture (Central Statistical Organization of Yemen, 2013).
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
128
VOLUME 7 NUMBER 1 MARCH 2015
Table 2. Manufacturing Activities
ISIC activity
V. Large
Large
Medium
Small
Total
Manufacturing
15
Foodstuffs and non-alcoholic
beverages
64
182
940
16,931
18,117
16
Tobacco products
2
7
36
115,000
160,000
17
Textiles making
1
7
55
646,000
709,000
18
Dressmaking and fur dyeing
8
105
372
5,249
5,734
19
Bags, shoes and hides tanning
9
9
9
64,000
91,000
20
Wood products excluding
furniture
1
15
242
2,287
2,545
21
Paper and paper products
10
1
2,000
13,000
22
Printing, publishing &
photocopying
5
38
68
124,000
235,000
23
Refined petroleum products
14
19
6
39,000
24
Chemicals and chemical by
products
14
5
9,000
28,000
25
Plastic products
26
17
19
13,000
75,000
26
Constructional non-metallic
products
46
204
1043
3,234
4,527
27
Manufacture of alkaline metals
(basic)
2
1
3,000
28
Worked metal products
23
168
709
5,367
6,267
29
Machinery and equipment
5
8
4
29,000
46,000
31
Electric equipment and
appliances
1
3
4,000
33
medical equipment and
instruments
2,000
2,000
34
Manufacture of engine vehicles
1
1,000
35
Other transport equipment
2
12,000
14,000
36
Furniture
3
38
164
1,769
1,974
37
Recycling manufacture
5,000
5,000
40
Electricity supplies
9
650,000
659,000
41
Accumulation, purification &
distribution of water
12
20
1,765
1,797
Approximately 147,708 people are employed in manufacturing for both
private and public sectors, mainly in food processing. Very Large establishments
employ 23.05 percent, large establishment employ 8.4 percent, medium size
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
129
establishments employ 18.3 percent, and small establishments employ 50.25
percent. The major contributor to manufacturing establishments as well as
employment is small scale enterprises. This is expected for low developed
countries as well as developed countries. For instance, it was estimated that small
and medium enterprises accounted for 97 percent (178,820) of identified importers
in the USA in 2011 (SBE Council, 2014). Table 3 presents important Yemeni
industrial-sector indicators.
Table 3. Gross Output and Value-added in the manufacturing sector 2011, YR millions
Firms
(by size)
No. of
Enterp
Gross
Output
Value-
added
No. of
Emp.
Labor
Productivity
Value
Added Per
Emp.
Very
Large
262
787556
240542
34043
23.13
7.07
% of total
0.60%
55.28%
48.96%
23.05%
Large
891
56217
25113
12406
4.43
2.02
% of total
2.06%
3.95%
5.11%
8.40%
Medium
3813
104718
45702
27032
3.87
1.69
% of total
8.80%
7.35%
9.30%
18.30%
Small
38371
476084
179984
74227
2.42
6.41
% of total
88.54%
33.42%
36.63%
50.25%
Total
43337
100,00
%
1424574
100,00%
491341
100,00%
147708
100,00%
9.65
3.33
b. Current Challenges Facing Manufacturing in Yemen
Yemen is facing many challenges that affect the development and
sustainability of its manufacturing sector. According to interviews and field
observations, the manufacturing sector in Yemen faces many challenges caused by
the government as well as firms themselves. These challenges are categorized and
discussed below.
c. Quality
Manufacturing in Yemen face issues with lower level of quality control
and improvement practices. The majority of the local manufacturers rely on local
demand, yet the local demand is very low, or does not exist for some products, due
to the low income of the Yemeni population at large. Given the low level, for most
Yemeni products, in meeting the international quality standards, manufacturers
face difficulties in exporting their products regionally and globally. There is a low
effort and unclear vision from the GoY, represented by the export council, as well
as local firms to market Yemeni products regionally and internationally. A study
by the UNIDO and funded by the UNDP, explores ways in which technical
assistance could be used to help Yemeni products comply with standards and
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
130
VOLUME 7 NUMBER 1 MARCH 2015
technical regulations of client countries. Compliance is one thing, just as important
is credibility and acceptance of compliance by foreign markets (UNIDO, 2002).
d. Human resources
Yemen has a large pool of lower cost manpower where the majority is
young people representing about 50 percent of the population (Central Statistical
Organization of Yemen, 2013). This is considered a comparative advantage to
regional countries in terms of human resources. However, this valuable resource of
labor has to be enhanced and trained in basic employability and technical skills. A
major challenge manufacturers’ face is sourcing skilled labor. Despite the
advantage of manpower available in Yemen, the manpower needs to be technically
qualified. The GoY has to develop a strategic industrial training plan to build up
the manufacturing and mining skills acquisition. This can be accomplished through
establishing linkages between universities, colleges, technical institutes, vocational
training centers, and local manufacturing. These links are necessary to reorient and
train output of the education system in for employability. Another advantage for
these linkages is to overcome the lack of research and development in the industry
sector.
e. Enabling Environment
1) Infrastructure
The main and most important obstacle facing the manufacturing sector is
the weak infrastructure of the country (power, roads, water). It has been noted
from the discussion with many small and medium manufacturers that their
businesses have suffered greatly from the power and fuel issues lately. Most of
them relied heavily on power generators to solve the issue of continues power
interruption. This has influenced the sustainability of these manufacturers, small
and large, since they rely heavily on power to run their operations, which in return
cause higher cost of operations. The GoY announced the lifting of oil subsides in
July 2014, which helped in availing diesel and gasoline in the market with 40
percent price increase. It is too early to assess the impact of lifting subsides of oil
on manufacturing and mining but we can claim the likelihood of operating costs
increase.
2) Industrial zones
Industrial zones present an opportunity for improving the manufacturing in
Yemen. According to our interview with the stakeholders, this is a dream yet to
come. Industrial zones are highly recommended by the UNIDO to improve
manufacturing and ensure its sustainability. The question here is what are the
reasons of why an industrial zone configuration in Yemen would attract investment
over existing land and infrastructure services? To answer this question, we have to
realize that in a LDC like Yemen, there is a weak land and infrastructure services.
We have explained some of the obstacles about the land ownership and the weak
infrastructure in terms of power, water, roads, and others. The other question we
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
131
need to ask here is, what could the GoY do to accelerate the improvement and
contribution of this sector in light of the existing weak infrastructure and other
explained issues in the country? One of the solutions the GoY needs to focus on is
the rehabilitation of existing and establishment of new industrial zones in strategic
locations in each province. Some argue that the country infrastructure needs to be
improved to attract investors. We agree but this will take a long time to accomplish
in light of the widespread geography of the country and the undeveloped provinces.
We can also argue that every attempt in improving the country overall
infrastructure is directly or indirectly contribute to the development of
manufacturing. Therefore, the rationale for zones is that in a smaller and focused
area, such as an industrial zone, it will be easier to offer investors the best practice
regulatory and infrastructure administration. It will be easier to clarify and
guarantee the security of land title, since it is one of the main obstacles investors
face, within a well-defined area such as a zone. Also, it might be possible to apply
and administer a reliable regulatory administration within such an area. This is
assuming that the government and the administration of the zones are committed to
the zones’ success. As an attraction for investors, the GoY should consider
establishing the industrial zones under the Free Zones Law. Under this law, goods
would be able to enter free of duty and investors would enjoy a 15 year tax holiday,
renewable for a further 10 years.
Despite its law was promulgated in 2005, industrial zones received little to
zero attention from the GoY compared to the estimated budget required to
rehabilitate the existing industrial zones. The GoY is obligated by law to prepare
the industrial zones with proper infrastructure as well as administration
requirements, yet no substantial progress for the past 10 years. This proves the
unwillingness and low level of commitment from decision makers as well as low
priority of manufacturing spending from the ministry of finance.
Proper and reliable infrastructure and security for Yemeni processing zones
may alleviate many of the problems faced by investors and provide a positive
business enabling environment for manufactures to operate and be productive. This
might help alleviate the problem of security, land issues, and infrastructure. The
planned processing zone will help in clustering supply chain value in provinces and
create opportunities for direct and indirect investments as well as create positive
competiveness between provinces.
3) Policies and Regulations
Observers are criticizing the complexity of policies and weak governance
of manufacturing. Despite the existence of the General Investment Authority
(GIA), investors are still complaining about hurdles investors have to go through to
get their investment running. Problems include tax categories, high taxes and
inefficient tax administration, regulatory arbitrariness, high cost of licenses and
permits, and corruption. In 2013, Yemen was ranked 125th in the world for the
difficulty of paying taxes. It is estimated that the 32.7 percent of the profit is being
taxed for investors (WB, 2014). This is discouraging for investors to invest
especially small and medium enterprises, which employees almost 70 percent of
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
132
VOLUME 7 NUMBER 1 MARCH 2015
the working force. In addition, weak legal and judicial system is another major
source of problems for investors especially in manufacturing. Some of the
manufacturing investments face security threats and tribal conflicts as a form of
sabotage. This is due to the lack of protective and clear laws and regulations to
organize land ownership and utilization of natural resources.
4) Access to Finance
Manufacturing faces difficulties in securing financial funding sources for
their investment. Investors have to rely, in most cases, on personal savings or
funding. Local banks charge high lending interest rate of 22.1 percent (WB, 2014),
which requires estates as loan guarantee. This is further constraining investment
and development in manufacturing sector by discouraging small and medium
entrepreneurs, which the fuel for many macroeconomics.
f. Emerging Challenges
1) Federalism
Another challenge/opportunity is the new proposed Yemeni federal system.
As an outcome of the national dialogue of the country, Yemen is planning to move
to the federal system with six provinces. The province defining committee, which
was established under the presidential decree number 2 for the year of 2014,
decided on 6 provinces for the federal system in Yemen. The committee submitted
its report to the constitution drafting committee, which was established under the
presidential decree number 27 for the year of 2014. The new constitution,
referendum for the new Yemeni constitution will be held on 2015, will transform
the country into a six-province federation. The federalism in Yemen brings with it
challenges and opportunities. One primary challenge is the incapability of local
provinces’ authority in managing revenue and expenditure where all of these
decisions were managed centrally. Observers expect difficulties in revenue
management, irresponsible spending, local corruption, provinces inequities, and
central government reluctance to decentralize authority. From our interview with
stakeholders there was a concern about expected reduced policy coordination and
coherence during the transition from centralized to decentralized regions. However,
there was a general consensus among stakeholders that the management capability
of local provinces will improve exponentially if the central government manages
the transition effectively and efficiently. The stakeholders stressed on the
importance of creating a communication system to connect the central government
with the provinces as a monitoring and control mechanism for local activities in
terms of manufacturing revenue and expenditure.
Conversely, stakeholders argue that concentration of revenue in particular
locale in any of the six provinces is an opportunity to motivate local participation
in manufacturing investment. Economically, this might help the unbalanced growth
of provinces by creating backward and forward linkages. A forward linkage is
created when investment in a particular project encourages investment in
subsequent stages of production. A backward linkage is created when a project
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
133
encourages investment in facilities that enable the project to succeed (Nixson,
1996). From industrial perspective, we define a backward and forward linkage as
supply chain value. Supply chain value comprises all activities from raw materials
all the way to distribution of final products to consumers. For example, the steel
industry has backward linkages to coal and iron ore mining. It also has forward
linkages to activities like the canning of goods. The higher the total number of
linkages, the better the spin-off effect on the national economy. The importance of
forward and backward linkage or supply chain value is the creation of other direct
and indirect establishments, creation of direct and indirect employment and human
development for each province and the overall economy. Examples of direct
establishments are suppliers of machinery, tools, accessories, packaging materials,
logistics, distributions, and marketing. Indirect examples are supporting services
such as cleaning services, caterers, insurance companies, housing, consulting
services, and training centers.
2) Supply Chain Management
There is a high dependency on imported raw materials which contributes,
for some competitive goods, to a higher cost of production. A good example is the
plastic industry where resins, Ethylene and Propylene come from crude oil, are
imported from countries like china and India. Manufacturers need to focus on the
supply chain value to be more vertically integrated in order to have more control of
their operations. It will also help indirectly in creating opportunities for other tier
suppliers and distributors to be forward or backward linked to the production
process. Understanding the supply chain value and its management techniques can
help the manufacturing and mining firms overcome some of the inefficiency in
running and managing operations.
Yemen has great potentials in natural resource-based manufactured
products such as honey, fish, tobacco, leather, vegetables, and fruits. Thus food
processing has potential in creating forward and backward linkages, which
generates synergy with the agriculture and fish sectors. In a low economy, such as
Yemen’s, where foreign investment has stalled or is relatively low, linkages can be
a good way of stimulating domestic economic activity and generating some degree
of import substitution. This is by taking an advantage of existing resources. Large
and increasing demand for mineral in the regional market is another opportunity
the GoY needs to capitalize on. Given Yemen has rich natural resources and it is
strategically located between Asia, Africa, and Europe will facilitate the export
process to regional and international markets.
3) WTO Accession
Trade liberalization, bilateral trade agreements, and accession to the World
Trade Organization (WTO) in June 2014 give Yemen another strength and
competitive advantage. Trade liberalization and WTO accession bring with them
opportunities and challenges for local manufacturing. Opportunities are in terms of
opening new markets for Yemeni manufactured products into the region and
international markets. However, the main challenge manufacturing sector will face
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
134
VOLUME 7 NUMBER 1 MARCH 2015
is the high competition with well-established regional and established industries.
Hence, the GoY has to capitalize on the opportunity of the WTO accession and its
status as being a Least Developed Country (LDC) member. LDC WTO principles:
non-discrimination and most-favored nation (MFN) principles (EU, 2013). This
will give Yemeni products advantages internationally with WTO members. Being
LDC member, Yemen can get technical assistant form WTO members to meet
WTO requirements. WTO opens up new markets and reduces barriers to Yemeni
exports. For this to be executed, Yemeni produces must meet the international
standards to gain access to international market.
g. SWOT of Manufacturing in Yemen
To maximize on the strengths and capitalize on opportunities, the GoY has
place more attention to the threats facing the local manufacturing. That is
manifested in the high competition from regional and international products. Many
Saudi, Emirates, Omani, and Chinese products are pouring into the local market
with cheaper and better quality standards. For Yemeni products to compete, the
GoY has to provide the necessary business environment for the manufacturing
sector to be able to operate effectively and efficiently. Also, the GoY has to control
the informal importing of goods (smuggling and dumping). This is impacting the
local manufactures in terms of unfair taxes and custom duties with other smuggled
products.
Domestic security and political instability of the country is another major
threat. Investments have lower chances of sustainability and progress in unstable
environment. The recent political changes and instability threatened several
manufacturing investments and some had to close their business down. Table 4
presents the strengths, weaknesses, opportunities, and threats of the manufacturing
sector based on the discussion on the previous and this section.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
135
Table 4. SWOT analysis of manufacturing
Strengths
Weaknesses
Large pool of labor/manpower
(HR)
Close to international shipping
route/low shipping cost
Rich natural resources and great
minerals potential
Trade liberalization and WTO
accession
Weak infrastructure
Investors’’ difficulty in finding funding
resources
Factory operations management inefficiency
Firms’ lower level of quality control and
improvement practices
Complexity of laws and policies
Weak effort in marketing Yemeni products in
international markets
Reliance on imported raw materials
Unclear industrial strategy plan
Lack of research and development centers
weak pool of technically skilled labor force
Weak enforcement of legal and judicial
systems
weak governance and management of
manufacturing
Opportunities
Threats
Accession to the WTO
Processing zones/industrial
zones (with basic services and
facilities)
Large demand for minerals in
the regional market
Strategic location between Asia,
Africa, and Europe
High competition from regional and
international products
Uncontrolled informal importing of goods
(smuggling and dumping)
Domestic security and political instability of
the country
Yemen is ranked by the transparency international at 140 out of 142 in the
global competitiveness index (Transparency International, 2014). This is mainly
due to the low export activities of Yemen and not because of the lack of
competitive advantages Yemen has locally and regionally. Thus, the hypothesis of
Yemen has no competitive priorities in the manufacturing sector to move toward an
ELI strategy is rejected, due to the evidence of Yemen enjoys unexploited
competitive advantage locally and regionally in food, tobacco, textile, garments,
natural stones, furniture, and wood work (WB, 2002). Yemen has competitive
priorities and can position itself competitively locally and regionally if the key
issues, previously discussed, are addressed.
In addition based on the previous analysis, Yemen has a very weak and
fragile industrial base because of many obstacles caused by the government and
firms themselves. Therefore, there is no significance evidence to reject the second
hypothesis of “Yemen does not have an industrial base to move to the ELI strategy
due to many obstacles caused by the government and firms”.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
136
VOLUME 7 NUMBER 1 MARCH 2015
5. CONCLUSION AND RECOMMENDATIONS
Manufacturing is among the main pillars for the Yemeni economy
diversification. Little attention has been paid by the government to this promising
sector. The GoY is stuck in the “analysis by paralysis” stage. Several economic
studies and recommendations were conducted by donors and international
organizations. Nonetheless, the public employee demotivation and low capability
of some government-execution agencies keep the country in this loop. Also, the
political instability and corruption in most of the government agencies are
hindering the top down dissemination and execution of such plans. According to
the transparency international index 2013 Yemen is ranked 167 out of 177 and
scored 18 out of 100 in terms of corruption perception index (Transparency
International, 2014). This is a serious concern for many investors and has to be
amputated by the GoY in order for written plans to be executed on time to get to
the final objective of promoting a pro-poor growth and reducing unemployment
An analysis of the current status of manufacturing in Yemen was presented
through available descriptive statistics. Discussions of the challenges facing
manufacturing were also presented and concluded with a SWOT table to
summarize the findings. This study concluded with reasonable evidence that
Yemen has unexploited competitive advantages in the manufacturing sector and
very weak industrial base to move toward an ELI strategy. There is a clear
understanding and consensuses among all studies that Yemen lacks the proper
infrastructure for developing and sustaining manufacturing. However, this is also a
major problem for all other sectors along with security. The government has to take
corrective actions in the long run to remedy these problems. The recommendations
in this paper do not focus on the prerequisites for sustainable industrialization since
these prerequisite are understood and of concern to the GoY already. However,
this paper’s recommendations focuses specifically on what the GoY can do
minimize the obstacles facing manufacturing follow:
(i) Implement a clear and effective manufacturing strategy
A great amount of work was done in developing a couple of strategies by
donors. A budget has to be allocated by the GoY to carry out the strategy. If a clear
strategy is implemented, it is expected to increase the job creation in the economy
and create opportunities for linkages with other sectors.
(ii) Establish regional-industrial support centers
To build entrepreneurs investment capacity and understanding level, there
has to be industrial support centers. This recommendation supports business
incubators suggested by other researchers. It is recommended that the industrial
support centers be located in the 6 new provinces to create equal opportunities of
investments. These centers should be decentralized and tied directly to the local
regional authority. The centers will serve as industrial modernization and help
stations to attract investors.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
137
(iii) Secure Fund for rehabilitating existing and establishing new
industrial and economic zones
One of the major obstacles in establishing the industrial and economic
zones is funding. The GoY has to allocate enough fund or source funds from
donors through the Ministry of Planning and International Cooperation to
rehabilitate exiting industrial zones in Lahj and Hadhramout, as well as newly
planned industrial clustering and economic zones in other provinces. The industrial
zones are becoming a necessity to improve manufacturing in Yemen due to the
existing security and infrastructure problems in the country. To overcome the
country problem with low infrastructure security and land issues, industrial zones
are expected to provide the necessary environment for manufacturing to operate
productively.
(iv) Strengthen the YSMO capacity and collaboration
The Yemen Standardization and Metrology Organization (YSMO) has
already received the ISO 9001 certification. However, the organization needs to
update its testing laboratories especially in the area of Electrical and Mechanical
products testing. The GoY has to support the board in obtaining the ISO 17025,
which is the general requirement for the competence of testing and calibration
laboratories. Having this certification entails the board to issue test certificates for
Yemeni products and be accepted internationally. In addition, the YSMO must
extend its collaboration to include local universities, educational institution, and
consumers to help the board in establishing the technical standards. The board has
to place more emphasis and extend its collaboration with the investors in educating
them about international standards requirement through seminars and workshops.
This will help Yemeni products enter regional and international markets.
(v) Conduct an updated study for the technical labor needs in the market
To understand the existing gap in the technical labor supply in the market,
a labor-requirements’ study needs to be conducted. This study should identify the
manufacturing and requirements in terms of technical and qualified labor needs.
This will help in developing an industrial training strategy to build up industrial
skills acquisition. It will also help in reorienting education curriculum to strengthen
employability of the students. This can be done by establishing links between the
local industry and local universities, community colleges, and vocational and
technical institutes. This should encourage higher and technical education institutes
to play their role in the society and development of the economy. These institutions
role is critical in establishing industrial centers for excellence, activating
manufacturing research and development, reorienting and building human
resources capacity, and training in managing the supply chain value effectively and
efficiently.
(vi) Strengthen coordination between the private and public sectors
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
138
VOLUME 7 NUMBER 1 MARCH 2015
The public private partnership is vital for the manufacturing development.
More dialogues and coordination between both private and public sectors need to
take place. The private sector represented by the Yemeni industrialist association
and the federation of the chamber commerce need to be more active in reaching a
wider base of local investors to strengthen its role in the economy growth. Regular
meetings, seminars, and workshops ought to be scheduled between the private
sector and the GoY to discuss prospects for potential investments by the private
sectors and required facilitation and protection by the government.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
139
REFERENCES
Alhammadi, A., Shahdan, F., Berma, M., & Ramlee, S. (2013). The Determinants
of Small Enterprises Growth Perfromance in Manufacture and Service
Sectors in Yemen. Journal of Academic Research in Economics, 3, 103–
127.
Almutawakel, Y. (2007). The Republic of Yemen: The economic situation and the
manufacturing sector. In K. A. Mahdi Yemen into the twenty-first century:
continuity and change (pp. 79-98). London: Ithaca.
Brehony, N., & Al Sarhan, S. S. (2014). The future of Yemen. Retrieved from Gulf
Research Meeting Cambridge: http://gulfresearchmeeting.net/ index.php?
pgid=Njk=&wid=ODg=&yr=2014
Central Bank of Yemen. (2013). Annual report of 2012. Sana'a: Central Bank of
Yemen.
Central Statistical Organization of Yemen. (2013). Statistical Report of the
Iindustrial Survey for the Year 2011. Sana'a: Central Statistical
Organization of Yemen.
Colton, N. A. (2010). Yemen: A collapsed economy. The Middle East Journal,
64(3), 410–426.
Cooper, D. R., & Schindler, P. S. (2011). Business research methods. McGraw-Hill
Education.
EU. (2013). National Export Strategy. Sana'a: EU and technical assistance
coordinated by ADE in association with Lambard Management
Consultants Ltd.
GIZ. (2011). Small & medium sized enterprise development strategy for Yemen.
Kirkpatrick, C. H. (1983). The industrialisation of less developed countries.
Manchester: Manchester University Press.
Mann, M., & Sultan, M. (2010). Programme design for the industrial
modernisation & upgrading programme of Yemen. Die Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ).
Ministry of Planning and Development, Republic of Yemen. (2001). Yemen’s
strategic vision up to the year 2025. Retrieved from
http://www.yemenwater.org.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
140
VOLUME 7 NUMBER 1 MARCH 2015
Ministry of Planning and International Cooperation. (2012). Transitional program
for stabilization and development (TPSD) 2012-2014. Retrieved from
http://www.ye.undp.org/content/dam/yemen/DemDov/Docs/TPSD%20201
2-2014%20Full%20Yemen%20.pdf
Mitsubishi Research Institute Inc. (2005). Enhancing Yemen export
competitiveness: Diagnostics and policy options. Tokyo: Mitsubishi
Research Institute Inc.
Nixson, F. (1996). Development Economics (Studies in Economics and Business).
Heinemann.
O. Hirschman, A. (1961). The strategy of economic development. New Haven:
Yale University Press.
Republic of Yemen. (2002). Poverty reduction strategy paper 2003-2005. IMF,
Retrieved from http://www.imf.org/external/np/prsp/2002/yem/01/
SBE Council. (2014). Retrieved from Small Business and Entrepreneurship
Council: http://www.sbecouncil.org/
SIRIM Malaysia Berhad Company. (2010). The industrial development strategy
framework (IDS), for sustainable industrial development in Yemen.. SIRIM
Malaysia Berhad Company.
Transparency International. (2014). Retrieved from http://www.transparency.org/
country#YEM.
UNDP. (2003). Diagnostic trade integration study –Overview.Retrieved from
http://enhancedif.org/en/document/yemen-diagnostic-trade-integration-
study-dtis-overview-2003
UNDP. (2006). Macroeconomic policies for growth, employment and poverty
reduction in Yemen. Retrieved from http://www.arabstates.undp.org/
content/rbas/en/home/library/poverty_ reduction/-macroeconomics-
policies-for-growth--employment-and-poverty-redu.html
UNIDO. (2002). Sustaining competitiveness in global markets — preparing Yemen
for WTO accession. Retrieved from http://www.unido.org/fileadmin/
import/ userfiles/timminsk/yemenprodocfull.pdf
UNIDO. (2013). Industrial development report 2013. Sustaining employment
growth: The role of manufacturing and structural change. Retrieved from
https://www.unido.org/fileadmin/user_media/Research_and_Statistics/UNI
DO_IDR_2013_main_report.pdf
WB. (2002). Economic growth in The Republic of Yemen. Sources, constraints, and
potential. Retrieved from http://documents.worldbank.org/curated/en/2002/
10/2035459/economic-growth-republic-yemen-sources-constraints-
potentials.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
VOLUME 7 NUMBER 1 MARCH 2015
141
WB. (2014). Doing Business. Retrieved from http://www.doingbusiness.org/data/
exploreeconomies/yemen.
WB. (2014). The World Bank Data. Retrieved from http://www.worldbank.org/en/
country/yemen.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS
142
VOLUME 7 NUMBER 1 MARCH 2015
