Sectoral Analysis: Growth Accounting of Secondary Industries

Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 39 Yahya Z. ALSHEHHI Judi OLÁH Facul y o Economics and Business, Uni e si y o Deb ecen SECTORIAL ANALYSIS: GROWTH ACCOUNTING OF SECONDARY INDUSTRIES Case S udy Keywo ds G ow h accoun ing, Seconda y sec o , Economic indus ies, TFP, UAE JEL Classi ica ion C23; E23; E24 Abs ac The mode n economic sys em o any na ion is di ided in o h ee majo p oduce ’s sec o s called p ima y, seconda y, and e ia y. These sec o s e o m a chain o p oduc ion as a con inuum, ul ima ely in he end p o ide goods and se ices. In UAE, economy sha e di ided by each sec o o he cu en GDP in yea 2015 we e 1%, 48%, and 51%, o he p ima y, seconda y, and e ia y sec o s, espec i ely. The pu pose o his empi ical s udy is o analyze he economic indus ies o he seconda y sec o by p ojec ing he con ibu ion g ow h sha e o ac o s o p oduc ion h ough using he g ow h accoun ing model o ime se ies om 1990-2015. The me hodology employed a quan i a i e desc ip ion and da a sou ced om FCSA. We ind he manu ac u ing indus y he main key con ibu o o sec o g ow h sha e, ollowed by he cons uc ion indus y, whe e he mining and qua ying subsec o s ha e less impac compa ed o he es . We obse ed ha he TFP pe o mance imp o ed posi i ely in line wi h a declining size o labo . Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 40 INTRODUCTION The globe is made up o mixed economies in which coun ies a y, whe e he e a e de eloped and de eloping coun ies (Oláh & Paku á , 2013). The main cause o his is p ima ily he une en possession o na u al esou ces o each coun y. So, some coun ies ha e elied on he ag icul u al sec o , o he s on he indus ial sec o , and o he s mos ly nowadays on he se ice sec o , al hough some coun ies a e cu en ly weal h by oil and gas esou ces. The e o e, oil and gas esou ces ha e become a big pa in he economies o hese coun ies. Howe e , he sho age o absence o hese na u al esou ces is no longe a majo obs uc ion o he g ow h p og ess o some coun ies, and hus no longe possess he esou ces o he ac o s ha lead o he p og ess o na ions by aking ad an age o all he ac o s o p oduc ion (such as physical, capi al, human esou ces, echnology, en i onmen al, and na u al esou ces). Thus, he Uni ed A ab Emi a es (UAE), as a case s udy used he e, is loca ed in he middle eas and is a membe o Gul Council Coun ies (GCC). The coun y achie ed a p og ess in i s g ow h by educing he eliance o oils sha es o GDP h ough enhancing he s a egy o di e si iy i s economy. I seems ha he coun y’s success in i s p og ess is based on enhancing he o he economic sec o s. Consequen ly, he esea che ook his ini ia i e o analyze he p ocess o pas g ow h h ough using g ow h accoun ing exe cise in sec o ial app oach, and in pa icula he seconda y sec o in o de o unde s and he main ac o s ha had con ibu ed o i s g ow h, why and whe e his sec o con inued he p oduc ion o oil. The seconda y sec o includes ou economic ac i i ies (sec o s o indus ies) and hese a e: mining and qua ying, manu ac u ing indus ies, elec ici y, gas and wa e , and cons uc ion, whe e hese ac i i ies essen ially ans o m aw ma e ials o physical goods (o p oduc ion o goods). Ul ima ely, he e m o sec o is used as a majo b eak up o economy and he e m indus y o economic ac i i y is used o subsec o s in he seconda y sec o . Also, in his s udy he e m se ice sec o e e s o he e ia y sec o and he manu ac u ing sec o e e s o he seconda y sec o . The analysis o hese sec o s will help unde s anding he ex en o he oil indus y in compa ison wi h o he indus ies in e ms o con ibu ion g ow h sha e. Acco ding o Figu e 1 illus a ing he agg ega e sec o ’s ou pu o he yea s 1990,1995,2000,2005, 2010, and 2015 i shows he ou pu gene a ed om he oil indus y, which con ibu ed o a high po ion o agg ega e ou pu o he seconda y sec o . Bu , ne e heless he a e age g ow h a e o mining and qua ying, manu ac u ing indus ies, elec ici y, gas and wa e , and cons uc ion we e 3.42%, 8.61%, 2.84%, and 6.32%, espec i ely in he pe iod analyzed. The aim o his empi ical s udy is o p ojec he con ibu ion sha e o g ow h due o ac o s o p oduc ion like capi al, labo , and TFP. Also, wi hin his s udy he annual a e age g ow h a e o each ac o is gene a ed o unde s and mo e in dep h he change aken place h oughou a long- e m se ies analysis om 1990-2015, and b oken down o h ee pe iod o imes like 1990-2000, 2000-2010, and 2010-2015. The empi ical s udy gi es answe s o he ques ion: wha is he main economic ac i i y (indus y), ha has a signi ican impac on he g ow h sha e o he seconda y sec o by di e si ying he economy? This wo k is di ided in sec ions whe e sec ion (1): li e a u e e iew, sec ion (2): da a and me hodology, sec ion (3): empi ical esul s, sec ion (4): discussion, and sec ion (5) conclusion. The indings o g ow h accoun ing a e analyed, whe e he MFG indus y was he main con ibu o o he sha e o g ow h o he seconda y sec o om he 1990-2015 due o he sha e g ow h o p oduc ion ac o s. I can be s a ed ha labo has a signi ican impac on g ow h o some economic indus ies, howe e , he ice e sa ela ionship be ween he size o labo o he pe o mance o TFP can also be wi nessed. I he e is a decline in he size o labo , he pe o mance o p oduc i i y becomes be e . LITERATURE REVIEW Economic sec o . The i s a emp o cla i y de ini ions, cha ac e is ics, and economic indus ies unde each ca ego y o p ima y, seconda y, and e ia y sec o s was back o he Wol e, Ma in in his wo k published in 1955 “The concep o economic sec o s”. The g ow h o p ima y, seconda y, and e ia y sec o s and shi s among hem in e ms o labo was gi en ame and impo ance om he well-known wo k “The Condi ions o Economic P og ess”, o Colin Cla k (Cla k & O he s, 1967; Kenessey, The P ima y, Seconda y, Te ia y and Qua e na y Sec o s o he Economy, 1987; Wol e, 1955). Acco ding o Mo is A. Copeland ha 's no mean o c i icize o making a compa ison be ween wo se s o measu emen s, bu a he o in e p e he di e ence be ween each sec o as he s a ed in his chap e “Di iding he Economy in o Sec o s” (Mo is, 1952). Manu ac u ing sec o is conside ed a key sec o ha assis s he coun ies o make a ebound in economic de elopmen . In mos Asian economies, speci ically in he ini ial s age o de elopmen he manu ac u ing sec o plays a signi ican ole in accoun ing o mo e han 20% o o al alue-added. This sec o be o e 1990s abso bed employmen Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 41 especially o people displaced om ag icul u e sec o , bu a e 1990s i has no been a ac ing employmen ega dless i s sound g ow h and expansion. In con as , China and India s a ed di e en de elopmen pa hs whe e hei economies based on se ice con ibu ion sha e (se ice-d i en) swi ched om he o me sec o , whe e hei economy elied mo e on manu ac u ing-d i en g ow h. F om 2000 o 2012, he sec o con ibu ion was 35% and 44% o manu ac u ing and se ice sec o s, espec i ely (APO, 2014). Inside he con ex o manu ac u ing employmen , a s udy s a ed ha o e he las 43 yea s he de eloped coun ies educed he sha e o manu ac u ing employmen in he o al employmen , whe e s a is ics showed he simila end in de eloping coun ies (Ha aguchi, Cheng, & Smee s, 2017). A s udy by Jo genson and Timme (2011) indica ed ha he sha e o manu ac u ing sec o declined in all egions (Eu ope, Japan, and Uni ed S a es (US)), whe e i accoun ed o 15% o GDP in yea 2005 (Jo genson & Timme , 2011). Acco ding o Jo genson and Nomua (2007) who s a ed ha in he Japanese economy he manu ac u ing sec o was he main con ibu o in he 1960s, bu by 1990s his impo ance almos disappea d, which had less impac o ou pu g ow h (Jo genson & Nomu a, 2007). A s udy s a ed ha he decline o bo h alue-added and employmen sha es in he manu ac u ing sec o in a la ge numbe o de eloping coun ies was no due o sec o ’s po en ial de elopmen bu due o decline an impo ance o manu ac u ing de elopmen o small numbe s o coun ies (Ha aguchi, Cheng, & Smee s, 2017). Fage be and Ve spagen (1999) s a ed ha he manu ac u ing sec o ac ed as an engine in he de eloping coun ies g ow h in he 1970s and 1980s, bu no o de eloped coun ies (Fage be g & Ve spagen, 1999). A s udy o c oss-sec ional eg ession be ween 1990-2000, which comp ised 48 de eloping coun ies, indica ed ha he manu ac u ing sec o played a key ole o g ow h while e ia y sec o played he simila unc ion o g ow wi hin his pe iod (Dasgup a & Singh, 2006). Ano he s udy highligh ed ha he manu ac u ing sec o was a majo ac o o g ow h be ween 1973 and 2004 beside he cons uc ion and se ice sec o (Chaka a y & Mi a, 2008). Thus, i can be concluded ha he seconda y sec o played a majo ac o o g ow h, whe e i has had a qui e good sha e o con ibu ion o ou pu . On he o he side, his sec o abso bed no mo e han a high sha e o employmen han be ween 1980s and 2000s. And, some o de eloping coun ies changed hei pa h wi h mo e ocus on se ice sec o . P oduc i i y. The p oduc i i y g ow h om he pas en yea s was d i en by he manu ac u ing and se ice sec o s, whe e he i s e lec ed he highe g ow h a e (McCausland & Theodossiou, 2012). The measu emen o p oduc i i y among coun ies in e ms o sec o al le el is mo e ob ious, whe e ypically, he manu ac u ing sec o dese ed he highes inc ease a e and some o ac i i ies in he se ice sec o . Fo ins ance, he inc ease a e o he manu ac u ing sec o was be ween less han 1% and 11% om 2001 o 2013, o I aly and he Slo ak Republic, espec i ely (OECD, 2015). A sec o ial c oss-coun y s udy ound ha he p oduc i i y was la ge in di e ence among coun ies, whe e i was la ge in he ag icul u e and se ice sec o s and smalle in he manu ac u ing sec o (Dua e & Res uccia, 2010). A s udy s a ed in e e ence o he con ibu ion o TFP in he UAE ha g ow h o GDP comp ised o ac o s o p oduc ion (labo , capi al, and TFP) and oil en pushed he use o capi al and labo ecou ses (Haouas & Heshma i, 2013). Acco ding o Paul Rome an inc ease in labo o ce leads o slow he change in TFP, while pushing he inc ease in capi al (Rome , 1990). A s udy in e e ence o he sou ce o g ow h in MENA coun ies indica ed ha he main sou ce o g ow h was capi al accumula ion and no TFP (Senay, Ben Ali, & Me , 2017). A s udy examined he TFP wi h alloca ion o labo inside he h ee sec o s in 45 de eloping coun ies and ound ha he ag icul u e (p ima y) was he leas p oduc i e sec o ollowed by he se ice and manu ac u ing sec o s (El-hadj, 2013). A ime se ies s udy indica ed ha he manu ac u ing, wa e and elec ici y, and cons uc ion sec o s con ibu ed he mos o UAE’s GDP, ollowed by ade and se ice be ween 1975- 1998., Fu he mo e, he same s udy unde lined he massi e dominance o labo o e capi al in g ow h con ibu ions, whe e he labo ’s con ibu ion was 104%, capi al con ibu ion was 30%, and TFP was -32% (Elhi aika & Hamed, 2006). Acco ding o So o and Haouas (2012) he UAE’s economy is labo -in ensi e, whe e employmen g ew mo e han p oduc ion and capi al wi h dis ega ds o cycle o he economy in he ea ly 1980s o 2000s. In conclusion, he e is a bene i o analyse he p oduc i i y in e ms o sec o s o indus ies, because i 's mo e ob ious. Ano he ac is ha o e use o esou ces such as capi al and labo cause an e ec in o he ac o s such as TFP. DATA AND METHODOLOGY The economic sec o s a e classi ied in o h ee la ge ca ego ies : (1) P ima y sec o , (2) Seconda y sec o , and (3) Te ia y sec o . The p ima y sec o uses na u al esou ces o p oduce goods such as li es ock, ishe y, ag icul u e. The seconda y sec o e e s o manu ac u ing indus y, whe e physical Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 42 goods a e ans o med o ano he one such as elec ici y, gas, wa e supply, and con ac ion. The e ia y sec o e e s o he se ice indus ies such as banking, insu ance, anspo a ion, communica ion, ade, heal h, and educa ion (Kenessey, 1987). The pu pose o his s udy is o analyse in dep h he seconda y sec o which includes indus ies like mining and qua ying (MQ), manu ac u ing indus ies (MFG), elec ici y, gas and wa e (EGW), and cons uc ion (CN) acco ding o he in e na ional s anda d indus ial classi ica ion (ISIC) (Na ions, 2008; Boswo h & Collins, 2008). The s udy sou ced h ee a iables: indus y’s ou pu (sha e o GDP), capi al accumula ion, and he numbe o wo ke s. The da a was gene a ed om he UAE Fede al Compe i i eness and S a is ics Au ho i y (FCSA, 2016). Ne e heless, he da a uses he numbe o wo ke s om 2011 o 2015 , es ima ed by he esea che based on he a io o ac i e wo ke s o he popula ion and labo o ce based on he yea 2010 da a, and hen gene a ed o each yea . The da a uses popula ion and labo o ce sou ced om he Wo ld Bank da abank (WB, 2016). The me hodology used in his s udy was Cobb- Douglas p oduc ion unc ion based on he model used by Solow (1956) o measu e he con ibu ion o p oduc ion ac o s and hei ole in p oduc i i y (Solow, Technical change and he agg ega e p oduc ion unc ion, 1957). The g ow h accoun ing equa ion (1) was calcula ed on h ee inpu s ha exp essed he ou pu g ow h. The unc ion o his model, whe e i has p ima y and seconda y inpu s, such as capi al and labo , is he calcula ion o p ima y and o al ac o p oduc i i y (TFP) as seconda y inpu . TFP deno ed in equa ion as [A], and called “Solow esidual” o “ echnical p og ess”. TFP calcula ed he imp o emen in p oduc ion p ocess, skill, echnology, knowledge, managemen p ac ice (Miles, Sco , & B eedon, 2012). And, acco ding o Solow (1957), TFP conside ed in long- e m a signi ican ac o o achie e sus ained g ow h end. Y = A(K, L) (1) g ow h accoun ing model helps o dese e he con ibu ion by ac o o p oduc ion, bu ne e heless p o ides he main eason behind he g ow h (Hul en, 2010). The me hod used in his s udy was quan i a i e and desc ip i e based on he calcula ion o a iables. P oduc ion unc ion model used o analyze he con ibu ion o inpu s in e m o long- un g ow h analysis (Wol , 1994), and di ided in g oup pe iod o imes. As exp essed in equa ion below which espec s he ime [ ], [Y]: deno ed o sec o ’s ou pu , [A]: deno ed as TFP, [K]: deno ed as capi al accumula ion, [L]: deno ed as labo (numbe o wo ke s), [a]: deno ed he capi al’s sha e, and [1-a]: deno ed as labo ’s sha e. The s udy assumed cons an e u n o scale, compe i i e ma ke (Solow, A Con ibu ion o he Theo y o Economic G ow h, 1956), and diminishing e u n o scale whe e he capi al’s sha e equaled o 0.3 and 0.7 o labo ’s sha e (Pike y, 2014). Y = A K αL 1−a (2) We desc ibed he p ac ice equa ions (2), and ew o e i in loga i hm o m as log-line , whe e i has h ee a iables, whe e any change a any p opo ional amoun ei he capi al, labo , o TFP, was conside ed an inc ease in ou pu . The equa ion is gi en below: ln∆Y Y = α. ln ∆K K +(1 − α).ln ∆L L +ln∆A A (3) The i s a iable was capi al: α. Δ𝐾 𝐾𝑡 ⁄, he second a iable was labo : (1 − α). Δ𝐿 𝐿𝑡 ⁄, and he hi d a iable was TFP: ∆𝐴 𝐴𝑡 ⁄. The e o e, each pa o equa ion’s a iables ep esen s he con ibu ion sha e o g ow h. EMPIRICAL RESULTS Table 1 p esen s he esul s o g ow h accoun ing excises o he seconda y indus ies om 1990 o 2015, whe e esul s we e di ided in o g oups o pe iod o imes (1990-2015,1990-2000, 2000-2010, and 2010-2015). The seconda y sec o included ou economy indus ies, namely mining and qua ying (MQ), manu ac u ing indus ies (MFG), elec ici y, gas and wa e (EGW), and cons uc ion (CN). The esul s as desc ibed, a e di ided in wo dimensions: a e age annual g ow h a e ela ed o indus y ou pu , capi al, labo , and TFP, and sha e o g ow h due o capi al, labo , and TFP. F om 1990 o 2015, in e m o a e age annual g ow h a e o indus y’s ou pu eco ded 9.05% as he maximum and 5.38% as he minimum. The MFG indus y indica ed ha he highes g ow h a e was 9.05% compa ed o CN, MQ, and EGW, whe e hey dese ed 7.96%, 5.94%, 5.38%, espec i ely. F om 1990-2000 he MFG showed he highes annual g ow h a e wi h 12.76% compa ed o EGW, CN, and MQ indus ies, whe e hey eco ded 6.29%, 5.54%, and 4.10%, espec i ely. F om 2000-2010, he MQ dese ed he highes a e age g ow h wi h abou 15.09%, ollowed by he EGW wi h 13.70% and CN wi h almos 12%. F om 2010-2015 he MFG dese ed be e a e age g ow h a e wi h abou 7.47% compa ed o MQ, and CN unlike he EGW eco ding nega i e g ow h wi h -11.36%. The annual a e age g ow h a e in capi al luc ua ed be ween 2.55% in he MQ and 3.85% in he CN, in labo i was be ween 2.99% in EGW and 6.28% in CN, and he TFP was mo ing be ween - 2.17% in he CN and -0.31 in he MFG. In gene al, he capi al a e age g ow h a e dese ed high igu es in MFG and CN in mos o he g oup o pe iod o imes, he CN dese ed high a e age Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 43 g ow h in all g oups o pe iod o imes in e m o labo , whe e unlike om 2010-2015, all seconda y indus ies declined in he labo ’s igu es. The a e age g ow h o he TFP om 2010-2015 showed a be e pe o mance unless he EGW dese ed nega i e g ow h wi h -12.36% compa ed o 1.67%, 4.20%, and 0.53%, o MQ, MFG, and CN, espec i ely. F om 1990 o 2015 he sha e o g ow h o capi al luc ua ed be ween 60% as he highes in EGW and 38% as he lowes in he MFG. The sha e g ow h con ibu ed by labo was 88% in MQ and 56% in he EGW. The con ibu ion g ow h by TFP was be ween -3% in he MFG and -31% in he MQ. The e o e, i can be concluded in long- e m analysis ha EGW, MQ, and MFG con ibu ed mo e by inpu s in sequence o capi al, labo , and TFP, espec i ely. F om 1990-2000, he g ow h sha e o labo was he highes in MQ and ollowed by CN, whe e esul s we e 138% and 97%, espec i ely. In gene al, he CN and MFG achie ed a ela i ely high g ow h a e due o he labo a mos o g oup pe iods o imes (Table 1). I is wo h men ioning ha he TFP pe o mance was posi i e in all indus ies om 2010-2015 wi h 42%, 56%, 109%, and 16% o MQ, MFG, EGW, and CN, espec i ely along wi h he decline in sha e g ow h o labo a all sec o s. Thus, he sugges ion he e is ha p ope managemen o he size o labo will help o imp o e he pe o mance o TFP. To sum up, in he long- e m analysis, he MFG as con ibu ed signi ican ly o sec o ’s ou pu as i esul ed in a e age annual g ow h a e o 9.05%, 12.76%, 8.25%, and 7.47%, o 1990-2015, 1990- 2000, 2000-2010, and 2010-2015, espec i ely. Also, he a e age annual g ow h a e o MQ was less compa ed o MFG o e en CN, whe e he a es we e 5.94%, 4.10%, 15.09%, and 3.98%, o 1990- 2015, 1990-2000, 2000-2010, and 2010-2015, espec i ely. Thus, he di e si ica ion s a egy o he coun y gained i s bene i by dec easing dependence o he oil indus y, and he MFG wi nessed i s con ibu ion o seconda y sec o ’s ou pu . In addi ion, he esul s showed ha he e is an in e se ela ionship be ween TFP and he pe cen age o he inc easing numbe o wo ke s, whe e he lowe he numbe o wo ke s, he be e he TFP pe o mance and ice e sa. The e o e, he managemen o he numbe o wo ke s will help he pe o mance o TFP as sugges ion. DISCUSSION This s udy p esen ed he main con ibu o o he seconda y sec o ’s ou pu , he main sec o ha impac ed he sha e o g ow h, and p esen ed he ela ionship be ween TFP pe o mance and labo inpu s. These ac o s a e conside ed he main indings by his empi ical s udy o long- e m se ies analysis. CONCLUSION As he aim o his s udy is o analyse he seconda y sec o ha included ou economic indus ies acco ding o UN (2008), whe e g ow h accoun ing model we e used. Fou g oup pe iods o imes we e he s udy’s di ision, whe e i can be said ha he di e si ica ion s a egy by UAE gained i s bene i s. The s udy wi nessed clea ly ha he MQ is no he main playe such he MFG and CN. The a e age annual g ow h a e o MFG showed he highes con ibu ion o he seconda y sec o ’s ou pu , e en a o he pe iod o ime. Fu he mo e, he a e age annual g ow h a e o capi al, labo , and TFP we e be ween maximum and minimum as ollow: (3.85% - 2.55%), (6.28% - 2.99%), and (-0.31 – (- 2.17%)). The con ibu ion g ow h sha es due o he labo had a highe impac in compa ing o capi al and TFP, whe e in gene al in MFG, MQ, and CN. The s udy showed ha he e was a ice e sa ela ionship be ween he size o labo o TFP pe o mance. I he numbe o wo ke s dec eased, he pe o mance o TFP imp o ed. This obse a ion was p esen ed in he calcula ion esul s om 2010-2015. In conclusion, he s udy illus a ed ha he MFG indus y was he main con ibu o o he seconda y sec o ’s ou pu ollowed by CN. In addi ion, he oil indus y con ibu ed less o he seconda y sec o ’s ou pu . The TFP pe o mance was posi i e speci ically om 2010-2015. ACKNOWLEDGEMENTS I is impo an o s a e he e ou hones app ecia ion o guides, use ul ecommended di ec ions, his con inued suppo o P o . D . Popp, Józse , head o Ká oly Ih ig doc o al school o managemen and business. BIOGRAPHICAL Yahya Alshehhi as co esponding au ho , he is a PhD esea che , whe e his esea ch in e es ing as he s o y o g ow h and i s de e minan s in Uni ed A ab Emi a es (UAE) by sec o al app oach. His email: yahya.als[email p o ec ed]m. And, D . Olah Judi as co-au he , she is associa e p o esso a Ins i u e o Applied In o ma ics and Logis ics, Deb ecen Uni e si y. Email: olah.judi @econ.unideb.hu. Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 44 REFERENCES [1] APO, 2014. APO P oduc i i y Da abook 2014. Asian P oduc i i y O ganiza ion. [2] Boswo h, B. & Collins, S. M., 2008. Accoun ing o g ow h: compa ing China and India. The Jou nal o economic pe spec i es, 22(1), pp. 45-66. [3] Chaka a y, S. & Mi a, A., 2008. Is Indus y s ill he engine o g ow h. An econome ic s udy. [4] Cla k, C. & O he s, 1967. The condi ions o economic p og ess.. The condi ions o economic p og ess. [5] Dasgup a, S. & Singh, A., 2006. Manu ac u ing, se ices and p ema u e deindus ializa ion in de eloping coun ies: A Kaldo ian analysis. s.l.:Resea ch Pape , UNU-WIDER, Uni ed Na ions Uni e si y (UNU). [6] Dua e, M. & Res uccia, D., 2010. The ole o he s uc u al ans o ma ion in agg ega e p oduc i i y. The Qua e ly Jou nal o Economics, 125(1), pp. 129- 173. [7] El-hadj, M. B., 2013. Sec o al P oduc i i y in De eloping Coun ies. [8] Elhi aika, A. B. & Hamed, A. H., 2006. Explaining g ow h in an oil-dependen economy: he case o he Uni ed A ab Emi a es.. Con ibu ions o Economic Analysis, Volume 278, pp. 359-383. [9] Fage be g, J. & Ve spagen, B., 1999. Mode n Capi alism’in he 1970s and 1980s. In: G ow h, employmen and in la ion. Sp inge , pp. 113-126. [10] FCSA, 2016. The Fede al Compe i i eness and S a is ics Au ho i y. [Online] A ailable a : h p://www. csa.go .ae/ [Accessed 15 Decembe 2016]. [11] Haouas, I. & Heshma i, A., 2013. Can he UAE a oid he oil cu se by economic di e si ica ion?. pp. 1-23. [12] Ha aguchi, N., Cheng, C. F. C. & Smee s, E., 2017. The impo ance o manu ac u ing in economic de elopmen : Has his changed?. Wo ld De elopmen , Volume 93, pp. 293-315. [13] Hul en, C. R., 2010. G ow h accoun ing. Handbook o he Economics o Inno a ion, Volume 2, pp. 987--1031. [14] Jo genson, D. & Timme , M., 2011. S uc u al change in ad anced na ions: a new se o s ylised ac s.. The Scandina ian Jou nal o Economics, 113(1), pp.1-29., 113(1), pp. 1-29. [15] Jo genson, D. W. & Nomu a, K., 2007. The indus y o igins o he US-Japan p oduc i i y gap. 19(3), pp. 315-341. [16] Kenessey, Z., 1987. The p ima y, seconda y, e ia y and qua e na y sec o s o he economy. Re iew o Income and Weal , 33(4), pp. 359-385. [17] Kenessey, Z., 1987. The P ima y, Seconda y, Te ia y and Qua e na y Sec o s o he Economy. Re iew o Income and Weal h, 33(4), pp. 359-385. [18] McCausland, W. D. & Theodossiou, I., 2012. Is manu ac u ing s ill he engine o g ow h?. Jou nal o Pos Keynesian Economics, 35(1), pp. 79-92. [19] Miles, D., Sco , A. & B eedon, F., 2012. Mac oeconomics: unde s anding he global economy. s.l.:John Wiley & Sons.. [20] Mo is, A. C., 1952. Di iding he Economy in o Sec o s. In: A S udy o Money lows in he Uni ed S a es. NBER, pp. 47-68. [21] Na ions, U., 2008. In e na ional S anda d Indus ial Classi ica ion o All Economic Ac i i ies (ISIC), Re . 4. Uni ed Na ions S a is ical Pape s, Volume 4. [22] OECD, M., 2001. Measu ing P oduc i i y: Measu emen o Agg ega e and Indus y-le el P oduc i i y G ow h: OECD Manual. s.l.:O ganisa ion o Economic Co-ope a ion and De elopmen . [23] OECD, P., 2015. OECD Compendium o P oduc i i y Indica o s 2015. OECD Publishing. [24] Pike y, T., 2014. Capi al in he Twen y- Fi s Cen u y. Belknap P ess. [25] Rome , P. M., 1990. Capi al, labo , and p oduc i i y. B ookings pape s on economic ac i i y. Mic oeconomics, Volume 1990, pp. 337-367. Ne wo k In elligence S udies Volume V, Issue 9 (1/2017) 45 ANNEXES Table 1. G ow h accoun ing esul s o he seconda y sec o s. A e age Annual G ow h Ra es Sha e o G ow h Due o: MQ Indus y Y K L A K L A 1990-2015 5.94% 2.55% 5.22% -1.83% 43% 88% -31% 1990-2000 4.10% 0.65% 5.67% -2.21% 16% 138% -54% 2000-2010 15.09% 5.00% 5.42% 4.67% 33% 36% 31% 2010-2015 3.98% 1.22% 1.09% 1.67% 31% 27% 42% MFG Indus y Y K L A K L A 1990-2015 9.05% 3.45% 5.91% -0.31% 38% 65% -3% 1990-2000 12.76% 2.67% 7.77% 2.32% 21% 61% 18% 2000-2010 8.25% 5.00% 6.09% -2.85% 61% 74% -35% 2010-2015 7.47% 2.17% 1.10% 4.20% 29% 15% 56% EGW Indus y Y K L A K L A 1990-2015 5.38% 3.24% 2.99% -0.85% 60% 56% -16% 1990-2000 6.29% 1.84% 2.45% 2.00% 29% 39% 32% 2000-2010 13.70% 5.45% 4.29% 3.96% 40% 31% 29% 2010-2015 -11.36% -0.09% 1.09% -12.36% 1% -10% 109% CN Indus y Y K L A K L A 1990-2015 7.96% 3.85% 6.28% -2.17% 48% 79% -27% 1990-2000 5.54% 4.18% 5.38% -4.02% 75% 97% -73% 2000-2010 11.52% 4.74% 8.96% -2.18% 41% 78% -19% 2010-2015 3.34% 1.74% 1.08% 0.53% 52% 32% 16% Sou ce: (FCSA, 2016), and own calcula ions. Figu e 1. Indus ies ou pu o 1990-2015). Sou ce: (FCSA, 2016), own c ea ed igu e.