The influence of human capital as a non-economic determinant on the economic growth of Oman

Abstract

In Oman, to reduce the dependence on oil for national income, economic activities have been pivoted to focus on non-oil sectors, and this is important for the country to be one of the most advanced countries economically. The present paper examines and measures the effectiveness of non-economic determinants of economic diversification on economic growth in Oman. The impacts of both human capital and the Tanfeedh programme and coupled with industrial development, on economic growth, are examined using data that is collected through a survey questionnaire. The preliminary analysis and PLS-SEM analysis indicate that the enablers of human capital to industrial development and the Tanfeedh Programme are the right strategic factors for Oman's progress. The findings of this study provide useful information for formulating strategies that will enhance Oman's economic diversification programme and the efficiency of human factors as the non-economic determinants. It will also provide further information on whether these results will contribute to the realignment of existing policies to promote a more favorable environment, and sustainable development in Oman.