Technology Transfer In Libyan’s Oil And Gas Industry In A Dynamic Economy Environment

by Mohamed M.M. Areish


In this era of globalization, technology transfer is a vehicle for bridging the gap in knowledge, ideas and innovations from one part of the world to the other. Technology transfer cut across industries, organisations and governments. This thesis examines the impact of technology transfer in the oil and gas sector of the Libyan economy between (1996-2010).

This period was categorized in to three epochs closed economy (1996-2001), transition economy (2002-2004) and open economy period (2005-2010).Both quantitative and qualitative approaches were adopted in investigating the impact technology transfer had on the general economy during this period.

The quantitative approach involved the use of times series data of some key economic indicators in the oil and gas industry while the qualitative approach was based on focus group discussions and interview of some major stakeholders in the oil and gas industry. Special package for social science statistics (SPSS software) was used to analyze the quantitative data while NVivo9 software was used for analyzing the qualitative data. The findings of the study showed that technology transfer had both negative and positive impact on the oil and gas industry and some other sectors of the national economy during the three epochs.

During the closed economy, production output and revenue generation from the sale of crude oil at the international market dropped. Government capital expenditure as revealed from the study was equally affected as a result of the drop in production output. Similarly, findings from the study revealed that there was a drop in the generation of power due to lack of spare parts and expansion of the existing plants. However, the positive impact was that local engineers and technicians were brought in to some key positions which hitherto were under the dominance of foreign expatriates.

The positive and negative impact of technology transfer as revealed from the findings formed the basis upon which the study built a Bi-Dimensional impact theory (BDIT). The BD1T as propounded by study serves as a pivot upon which the impact of technology transfer could be assessed in any sphere of the national economy.

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