Abstract
This thesis investigates the alternative options open to the Kuwaiti economy to link the Oil Sector to the overall development plans of the country. This is carried out in four stages: First, the peculiar features of the Kuwaiti oil sector are discussed with reference to the models that have been specified to study and analyse the sector together with the general features of oil models tailored to fit oil producing 'surplus' economies, such as Kuwait. Secondly, a detailed oil model for Kuwait is constructed reflecting the role of the economy's limited absorptive capacity in determining its development path. The proposed model is disaggregative, links the supply and demand for oil, and employs some oil prices as endogenous instruments for economic policy. In the third stage, the alternative options are exercised by applying the Oil Model using two frameworks; an income-expenditure framework and a production framework. In applying both frameworks, the 'Oil Income' is used as the bridge to link development plans to the oil model. Finally, analysis will be carried out to the model's possible uses. No simulation or policy suggestions will be made, as this would be outside the work's limits.