Entrepot Development and Diversification: A comparative case study of Singapore and Dubai

Abstract

This study conducts a qualitative comparative case study analysis of Singapore and Dubai, two city-states with similar entrepot histories and development approaches, to examine the factors contributing to their different economic diversification outcomes. Despite implementing comparable policies during the same period, Singapore diversified into high-technology manufacturing and a knowledge-intensive economy, while Dubai developed a service-based economy as a global logistics and regional finance hub. Using the 'most similar systems design', this study identifies theoretically significant differences between the two cases, such as Dubai's hydrocarbon revenues, its high dependence on expatriates, and Singapore's geographic location in Japan's industrialisation zone. This study aims to understand how these differences in inputs affect the outcomes of their development models, pushing beyond limitations in historical data and potential criticisms of comparing a successful Middle Eastern economy to a prominent Asian economy. By evaluating the  interaction between development policies and businesses, this study contributes to the literature on late-development, highlighting the importance of factors within and outside policymakers' control, such as human capital development, resource wealth, history, and regional development. The findings provide valuable insights for economic historians and development practitioners in understanding the nuances of development approaches in different contexts.