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Impact of Non-oil Export on Non-oil Economic Growth in Saudi Arabia

Author

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  • Mohammed A Aljebrin

    (College of Business Administration, Majmaah University, PO Box 11952, Majmaah, Saudi Arabia)

Abstract

This study empirically estimates the critical parameters of non-oil export impact on non-oil economic growth in Saudi Arabia for the period 1988-2014 by using ordinary least squares and error correction model approach. The empirical results obtained show that, in both short run and long run, there are positive and significant relationship between the non-oil economic growth and non-oil exports. There is also positive and significant relationship between non-oil economic growth and capital in both long run and short run. On the other hand, there is positive and significant relationship between non-oil economic growth and labor in the long run but positive and insignificant in the short run. The error correction is correctly negatively signed and highly significant and has a large magnitude (-0.537) suggesting a rapid adjustment process, which means that, if non-oil gross domestic product is 1% out of equilibrium, a 53.7% adjustment towards equilibrium will take place within the first year.

Suggested Citation

  • Mohammed A Aljebrin, 2017. "Impact of Non-oil Export on Non-oil Economic Growth in Saudi Arabia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 389-397.
    • Handle: RePEc:eco:journ1:2017-03-51
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    References listed on IDEAS

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    Cited by:

    1. Waheed, Rida & Sarwar, Suleman & Dignah, Ashwaq, 2020. "The role of non-oil exports, tourism and renewable energy to achieve sustainable economic growth: What we learn from the experience of Saudi Arabia," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 49-58.

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    More about this item

    Keywords

    Non-oil Export; Open Economy; Non-oil Gross Domestic Product; Saudi Arabia;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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