--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-44/the-falling-productivity-in-west-asian-arab-countries-since-the-1980s-causes-consequences-and-cures/" title: "The Falling Productivity in West Asian Arab Countries Since the 1980s: Causes, Consequences, and Cures" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T08:14:57+00:00" date_modified: "2026-07-13T08:14:57+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2023" ipm_keyword: - "Arab countries" - "capital deepening" - "diversification" - "GCC" - "Groningen" - "ILO" - "labour" - "oil" - "productivity" - "structural change" - "TFP" - "West Asia" ipm_research_theme: - "Productivity trends and comparisons" ipm_country_focus: - "International" - "Middle East" - "West Asia" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Falling Productivity in West Asian Arab Countries Since the 1980s: Causes, Consequences, and Cures Canonical URL: https://csls.ca/ipm-archive/ipm-issue-44/the-falling-productivity-in-west-asian-arab-countries-since-the-1980s-causes-consequences-and-cures/ # The Falling Productivity in West Asian Arab Countries Since the 1980s: Causes, Consequences, and Cures [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-44-4-Erumban.pdf) Cite this article × Cite this article as: Erumban, Abdul. 2023. “The Falling Productivity in West Asian Arab Countries Since the 1980s: Causes, Consequences, and Cures.” International Productivity Monitor, No. 44 (Spring 2023): 89–119. https://www.csls.ca/ipm-archive/ipm-issue-44/the-falling-productivity-in-west-asian-arab-countries-since-the-1980s-causes-consequences-and-cures/ ## Author: - Abdul Erumban University of Groningen ## IPM Issue 44 Spring 2023 pp. 89–119 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article analyzes the macro trends in real per capita GDP and productivity in 12 West Asian Arab countries, distinguishing between the oil-rich GCC economies and the non-GCC West Asian Arab economies. We use a panel data econometric analysis to understand the trade-off between productivity and job creation in the region. Further, we examine the sources of aggregate labour productivity growth in terms of a) structural change and within-industry productivity improvements and b) capital deepening and total factor productivity growth. Although the nature of productivity problems in the two groups of countries – the GCC and non-GCC West Asian Arab economies – differ, the challenges in addressing those are substantial for both. Developing a vibrant private sector that can foster productivity growth is a common challenge for both groups of countries. The inability to embrace innovation and technology and to translate investment in capital to productivity are important impediments to boosting productivity growth. Focusing on technology and innovation, continuing the efforts to diversify away from oil, and upskilling the local workforce are essential to creating more productive jobs for the native population. Cet article analyse les tendances macroéconomiques du PIB réel par habitant et de la productivité dans 12 pays arabes d’Asie occidentale, en distinguant les économies riches en pétrole du CCG et les économies arabes d’Asie occidentale hors CCG. Nous utilisons une analyse économétrique de panel pour comprendre le compromis entre productivité et création d’emplois dans la région. De plus, nous examinons les sources de la croissance de la productivité globale du travail en termes de changement structurel et d’améliorations de la productivité intra-industrielle, ainsi que d’approfondissement du capital et de croissance de la PMF. Bien que la nature des problèmes de productivité dans les deux groupes de pays diffère, les défis pour y remédier sont substantiels pour les deux. 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