Measuring Competitive Manufacturing Industry in the Emirate of Abu Dhabi, Using Selected Performance Indicators

Firas Rawashdeh, Mohammad Hasan Saleh

Abstract


This research presents the analysis of competitive manufacturing industry in the Emirate of Abu Dhabi, using a number of selected indicators. The study aims to recognize the reality of the manufacturing industries in the Emirate of Abu Dhabi. The research highlights the challenges facing such industries, and stands on the competitive position of the manufacturing industry in the Emirate by measuring Comparative Advantage indicator in these industries in the Emirate as well as efficiencies of scale in order to identify the return of scale in the manufacturing industry in the Emirate, and the CIP Index derived from the UN Industrial Development Organization (UNIDO), to investigate the contribution of the technical efficiency in the manufacturing industry of the Emirate. Moreover, It measures the level of technical efficiency of the manufacturing industries in the Emirate to determine the extent of model utilization optimization of resources at the lowest costs.
Measurement results have shown the Emirates of owning of a comparative advantage in the industries of plastics and products, industry of vehicles, and shipbuilding as well as floating facilities. On the other hand the Emirate's lacks the comparative advantage in industries such as wood, paper and textiles. The study has found a decline in competitive industrial performance index which reflects the contribution of the limited technical component in the manufacturing industry of the Emirate. The results show that the Abu-Dhabi manufacturing industries have witnessed increased return with moderate scale estimated at 1.15, 1.16.
The results of the index measuring technical efficiency in the manufacturing industry in the Emirate of Abu Dhabi show that the manufacturing industries in the Emirate have the average level of technical efficiency. The study also presents the high efficiency of the use of fixed assets of manufacturing through a lower average cost of fixed investment.
The study has recommended a package of proposals in the light of the results that have been reached. The most important one is the review of operating costs to make it more competitive, such as the prices of fuel and rent industrial land to raise the Competitiveness of areas in the Emirate, and to plan the use of foreign labor.

Keywords


Competitiveness, Competitive Industrial Performance, Efficiency of Scale, Technical Efficiency, Stochastic Frontier Analysis, Increasing Return to Scale.

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