Chapter 7: Women's Entrepreneurship, Innovation, and Economic Growth in the GCC: A Sectoral Analysis

Economic growth refers to the increase in a country’s production of goods and services over time, measured by changes in GDP. It reflects improved living standards, job creation, and overall economic progress. Kenessey (1987) examined the classification of economic activities into primary, secondary, and tertiary sectors, offering insights into their roles in economic development. The primary sector, comprising agriculture, fishing, forestry, and mining, focuses on natural resource extraction and is crucial in less developed economies but declines in importance as economies grow and diversify. The secondary sector, centered on manufacturing and industry, involves transforming raw materials from the primary sector into finished goods or intermediate products, serving as a driver of industrialization and development. The tertiary sector, known as the service sector, includes activities such as retail, healthcare, education, and financial services, which become dominant in developed economies where services play a central role in economic activity. These sectors help economists and policymakers understand employment trends, economic growth, and productivity dynamics across industries. Piesse and Thirtle (1997) analyzed the efficiency and productivity of Hungarian primary, secondary, and tertiary industries during the country’s economic transition by providing a comparative analysis for these sectors. The research reveals that the tertiary sector, particularly services, became the main driver of economic growth. Variations in sectoral efficiency were influenced by resource allocation, technological changes, and management practices, which were crucial during the period of transition. These findings highlight the importance of structural reforms and their impact on sectoral performance in transitional economies. Muhammad et al. (2022) demonstrated that the tertiary sector (services) contributes significantly to improved environmental efficiency, while the primary sector (e.g., agriculture and mining) shows higher energy intensity. The study underscores that policies tailored to the level of industrial development are crucial for enhancing sustainability across different economies.