Resumen de Number of establishments and economic growth: case of Kuwait, 2001-2014

Mohammad Alawin, Alia Abu aiseh

• The main purpose of this research is to highlight on the importance of entrepreneurship as a mechanism for knowledge spillovers, thereby contributing to the economic growth and prosperity of Kuwait. Using data for the period 2001 to 2014, we have analyzed the relationship between the number of establishments and economic growth. We have found some interesting relationships: a positive effect of the increase of real GDP per capita on the number of Establishments per one thousand people and on the average real Value-added per establishment. In addition, we haven’t found a positive effect of the number of Establishments on Gross Domestic Product This result can be attributed to many reasonable explanations. First, the limited number of observations. Second, the impact of all the other variables on GDP is theoretically to be effective on the long run. Third, there are other variables contributing to the GDP of Kuwait, like oil prices and the size of the oil exports.