An Extension to Late Rentierism, using a Comparative Compound Diversification Index, to Show the Movement Towards Mixed Mode Economic Diversification and Development, in the GCC States

Abstract

This study draws together several strands of research, including late rentierism, economic diversification in the GCC states of the UAE, Qatar, Kuwait, Oman, Kingdom of Saudi Arabia, and Bahrain, in an attempt to measure the direction of the trend towards a mixed mode economy. A comparative compound diversification index (CCDI) is developed to measure the movement along the late rentier continuum of development. The research is based on data from various Global Innovation Index (GII) reports and databases, which provide the attributes used to measure the overall trends. It creates a foundation for the ongoing measurement of this trend over the coming decade, and provides a correlation with the oil price fluctuations, thereby measuring how much the GCC states dependence may be changing, however incrementally, and however marginally that may be. The study does confirm a move towards a mixed mode economy, with knowledge-based, technology and innovation led activities at the heart of that incremental and marginal change.