Industrial Diversification in Jordan: Calculation and Patterns

Tha'r Mutlaq Mohammed Ayasrah

Abstract


This study aims to calculate the coefficient of industrial diversification through measurement of number employment in the industrial sector, coefficient of industrial diversification has been calculated using governorates as basic level for study firstly, and the whole Jordan, secondly . The study relies on three indicators to calculate the industrial diversification as the clearest indication and is the leader in this field, and in line with the methodology of the study, Tress Index, Rodgers Index, Entropy Index have been applied, and to identify patterns of industrial diversity cluster analysis has been applied.
According to the results of the study, there is a difference in the degree of industrial diversification in governorates. And the results show similarity of the governorates order according to Tress index and Rodgers index, while there was little difference with Entropy index. From the results of calculations of this research using cluster analysis, it become possible to differentiate between three patterns reflecting degree of industrial diversification among the governorates of Jordan, The thick industrial diversification pattern, middle industrial diversification pattern, and finally, weak industrial diversification pattern.
The study recommends the promotion of investments in priority sectors and stimulating growth , which have been identified in the national agenda, as well as the need to maintain the continued high coefficient of industrial diversification governorate capital through the expansion of food, textile, mining and metal industries, and work to raise the degree of diversity industrial in second pattern governorates and most of the third pattern due to the urgent need for diversity of the industrial structure. In addition to the need to adopt the principle of diversity as a basis when formulating Jordan's (sectorally and regionally) industrial policy, whether it is on a short term or long one.

Keywords


Industrial Diversification, Tress indicator, Rodgers indicator, Entropy indicator, Coefficient of industrial diversification, Jordan.

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