The importance (impacts) of knowledge at the macro-micro levels in the Arab Gulf countries

Samia S. O. M. Nour


In this paper, we use the data from the firm survey (2002) at the micro level and some recent and update current secondary data at the macro level to examine the importance (impacts) of tacit and codified sources of knowledge at firm and aggregate levels respectively. Our results at the macro level are consistent with the notion that tacit knowledge is complementary with schooling, while tacit knowledge and codified knowledge are positively correlated with GDP. Moreover, at the macro/aggregate level, our results show a significant complementary relationship between codified knowledge and the number of Full Time Equivalent Researchers (FTER) and between them and publications, cooperation and technology (patents). Our findings at the micro level indicate positive correlations between tacit knowledge, ICT, training, profit, output and output diversification. In addition, our findings illustrate that tacit skill/knowledge inside the firm increases with market size: total investment, capital, firm size and age. Our results are consistent with the findings in the knowledge literature and are also useful to indicate the importance of good education at both the micro and macro levels.

Keywords: Tacit knowledge, codified knowledge, economic growth, Arab Gulf countries.

JEL classification: O10, O11, O30

Download the working paper