The Relationship between the investment in Petrochemical Industries and Economic Development - Research Proposal Example

Download file to see previous pages Changing the production means refers to the correction of faults in the structure of the economy or elimination that problem (Omar Mohyee Adeen, 1976).
One of the major factors that affect the changes in the national economy is that of investment decisions (Krosinsky, and Robins, 2008). Often the discovery of an abundant natural resource in one country leads to tremendous investment in the resource and decline in the manufacturing sector. This scenario which is called the Dutch disease is a common effect in developing as well as developed countries.
It is necessary that the development of an industry following the discovery of a natural resource is accompanied with a balanced development of manufacturing and the small industries. This will lead to generation of employment and diversification of the source’s income.
With the availability of abundant raw materials, natural gas and cheap workforce the petrochemical industry is the best industry that shall be developed to grow the economy (Rooney, 2005; Sari, 2009). With this framework, it will be interesting to analyze if there is any relationship between the investments in petrochemical industry and economic growth. Besides this, the author will try to find out the possibility of a Dutch Disease taking place in the Libyan economy. The author will also try to find out the possible ways to prevent it and achieve a balanced growth of economy.
The aim of this research is to understand and explore the potential impact of the discovery of petrochemical industry resources in Libya. The author aims to achieve the following objectives through the research:
The effect of the development of petrochemical industry on other industrial sector’s size and profitability. In particular, the author aims to find out the affect on smaller and manufacturing industries.
Often, the discovery of a natural resource in abundance leads to high economic ...Download file to see next pagesRead More