Oman

This study provides novel evidence on this insight by examining the effect of a change in fossil fuel subsidies on the manufacturing industry of an oil-rich Middle Eastern economy. Using a novel firm-level micro data set on Omani manufacturing enterprises, our work shows that increases in fossil fuel energy factor prices lead to improvements in productivity as well as efficiency and notable business upgrading. Our work indicates that subsidy reforms may not only be used to achieve environmental goals but may also drive upgrading and modernization processes of firms that can, ultimately, also improve economic performance.

Analysing the effect of energy price increases on firm-level productivity in Oman.