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Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach

Author

Listed:
  • SazanTaher Saeed

    (Department of Economics, University of Sulaimani, Kurdistan Region Government/Iraq.)

  • Dr. Hatem HatefAbdulkadhimAltaee

    (ollege of Administration and Financial Sciences, Cihan University, Slemani Camp, Sulaimaniyah–Kurdistan Region, Iraq)

Abstract

The export and economic growth nexus, which is called Balassa’s Export-Led Growth Hypothesis (ELGH) in the literature, is still an unstill issue in both the theoretical and empirical literature. In the present study, the effect of export on economic growth in oil exporting developing countries, namely, Bahrain, Saudi Arabia, Qatar, Kuwait, UAE, and Oman in the 1990–2014 period was tested based on three models, pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM) via panel data analysis . The findings revealed strong support for the “export-led growth†hypothesis. In addition, our results show that apart from growth in the labor force, investments in capital formation are necessary for economic growth. According to the obtained results, the ability to adopt technological changes in order to increase efficiency, and sustain economic development is also important.

Suggested Citation

  • SazanTaher Saeed & Dr. Hatem HatefAbdulkadhimAltaee, 2017. "Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 7(12), pages 1-9, December.
    • Handle: RePEc:mir:mirbus:v:7:y:2017:i:12:p:1-9
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    Cited by:

    1. Tafirenyika Sunde & Cyril Ayetuoma Ogbokor, 2018. "The Effects of Exports in SACU Countries: An Empirical Analysis Using Panel Data," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 142-155, AUGUST.
    2. Fakhri J. Hasanov & Muhammad Javid & Frederick L. Joutz, 2022. "Saudi Non-Oil Exports before and after COVID-19: Historical Impacts of Determinants and Scenario Analysis," Sustainability, MDPI, vol. 14(4), pages 1-38, February.

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    More about this item

    Keywords

    Export; Economic Growth; GCC Countries; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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