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The Nature of the Relationship between GDP and Energy Consumption in Saudi Arabia

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  • Mohamed Noureldin Sayed
  • Mahmoud M. Hussein Alayis

Abstract

This paper aims to explain the relationship between Gross Domestic Product (GDP) and energy consumption in Saudi Arabia; this is one of the most important emerging markets in the Middle East region. Moreover, this paper uses the Granger Causality test, to investigate over the period from 1970 to 2014 the nature of the co-integration between the variables of GDP and energy consumption. This is done to find out the direction of the relationship between GDP and energy consumption in Saudi Arabia. In this regard, we have come to the conclusion that, on the one hand, Saudi Arabia’s GDP has no causal effect on the country’s energy consumption. However, on the other hand, Saudi Arabia’s energy consumption has a causal effect on the country’s GDP.

Suggested Citation

  • Mohamed Noureldin Sayed & Mahmoud M. Hussein Alayis, 2021. "The Nature of the Relationship between GDP and Energy Consumption in Saudi Arabia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(7), pages 1-28, July.
    • Handle: RePEc:ibn:ijbmjn:v:14:y:2021:i:7:p:28
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    References listed on IDEAS

    as
    1. Mohamed Abbas Ibrahim, 2011. "Energy consumption, Income and Price Interactions in Saudi Arabian Economy:A Vector Autoregression Analysis," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 1(2), pages 1-1.
    2. Bélaïd, Fateh & Abderrahmani, Fares, 2013. "Electricity consumption and economic growth in Algeria: A multivariate causality analysis in the presence of structural change," Energy Policy, Elsevier, vol. 55(C), pages 286-295.
    3. Alshehry, Atef Saad & Belloumi, Mounir, 2015. "Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 237-247.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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