Jordan’s manufacturing sector: edging into more complex products

Abstract

This policy report on Jordan’s industrial sector is the second in a series of reports aimed at identifying strategic options Arab countries have in undertaking structural transformation. Using the product space methodology, this report analyzes existing capabilities of selected economies by identifying products they currently export and determining which path they should follow to produce more sophisticated and strategic products. A study of Jordan’s product space reveals that the country should focus on capitalizing on opportunities in the machinery, electrical, chemical, and textile clusters. Of particular interest are products in the machinery and electrical community, which have a relatively high product complexity index ranking, meaning developing them would have a significant impact on Jordan’s average complexity. To meet this goal, Jordan should consider instituting industrial policies that provide support and public inputs to improve productivity in these industries, enabling them to jump to new opportunities.