The Role of Imports on the Divergence of the Saudi Arabian Economy from an Oil Based Economy

Year 2024, Volume: 13 Issue: 26, 1 - 10

Wisam Adnan Samarah , Mohammad Yahia

https://doi.org/10.55589/bsbd.1548802

Abstract

Bu makale, ithalat ile hem Kişi Başına Reel GSYİH hem de Reel GSYİH arasındaki nedensel ilişkileri araştırıyor ve bu değişkenlerin Suudi Arabistan'ın petrol bağımlı bir ekonomiden daha rekabetçi bir ekonomiye geçişini nasıl etkilediğine odaklanıyor. Macrotrends web sitesinden alınan 1968-2022 yılları arasındaki verileri kullanarak, Reel GSYİH, Kişi Başına Reel GSYİH ve temel makroekonomik göstergeler arasındaki bağlantıları incelemek için bir zaman serisi analizi gerçekleştirdik. Analiz, bu değişkenlerin Suudi ekonomisinin artan rekabet gücüne doğru kaymasına olan katkısını vurguluyor. Sonuçlar, ithalatın hem Reel GSYİH hem de Kişi Başına Reel GSYİH üzerinde önemli ve olumlu bir etkiye sahip olduğunu ortaya koyarak, ekonominin daha fazla rekabet gücüne doğru ilerlemesindeki önemli rollerini vurguluyor.

Keywords

Imports, Oil-based Economy, Saudi Arabia, Macroeconomic Variables, Time Series

Ethical Statement

Wisam A. Samarah and Mohammad Yahia consent compliance with ethical standards. Funding: Not Applicable. Conflict of Interest: Wisam A. Samarah and Mohammad Yahia declare that they have no conflict of interest.

The Role of Imports on the Divergence of the Saudi Arabian Economy from an Oil Based Economy

Abstract

This paper investigates the causal relationships between imports and both Real GDP per capita and Real GDP, focusing on how these variables influence Saudi Arabia's transition from an oil-dependent economy to a more competitive one. Using data from 1968 to 2022 sourced from the Macrotrends website, we conducted a time series analysis to explore the interconnections between Real GDP, Real GDP per capita, and key macroeconomic indicators. The analysis underscores the contribution of these variables to the Saudi economy's shift toward increased competitiveness. The results reveal that imports have a significant and positive effect on both Real GDP and Real GDP per capita, highlighting their crucial role in driving the economy towards greater competitiveness.

Keywords

Imports, Oil-based Economy, Saudi Arabia, Macroeconomic Variables, Time Series

References

• Abu-Rashed, J., Almafdali, I., & Ballard, J. A. (2020). The Role of Business Intelligence in a Knowledge-Based Economy: The Case of Saudi Arabia. International Journal of Economics and Business Research, 19(1), 30-41.
• Albassam, B. A. (2015). Economic Diversification in Saudi Arabia: Myth or Reality? Resources Policy, 44, 112-117.
• Ali, A. (2020). Industrial Development in Saudi Arabia: Disparity in Growth and Development. Problems and Perspectives in Management, 18(2), 23-35.
• Anyaehie, M. C., & Areji, A. C. (2015). Economic Diversification for Sustainable Development in Nigeria. Open Journal of Political Science, 5(02), 87.
• Barro, R. J. (1991). Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics, 106(2), 407-443.
• Bergholt, D., Larsen, V. H., & Seneca, M. (2019). Business Cycles in an Oil Economy. Journal of International Money and Finance, 96, 283-303.
• Blanchard, O. (2009). Macroeconomics. 5th Edition. New York: Pearson.
• El Amine, R. (2023). The GCC Countries Diplomatic Approaches and Its Impact on Economic Development: A Comparative Study of the UAE, Saudi Arabia, Qatar, and Kuwait. Doctoral Dissertation. Louaize: Notre Dame University.
• Elhiraika, A. B., & Hamed, A. H. (2006). Explaining Growth in an Oil-Dependent Economy: The Case of the United Arab Emirates. Contributions to Economic Analysis, 278, 359-383.
• Ewers, M. C. (2016). Oil, Human Capital and Diversification: The Challenge of Transition in the UAE and the Arab Gulf States. The Geographical Journal, 182(3), 236-250.
• Foudeh, M. (2017). The Long Run Effects of Oil Prices on Economic Growth: The case of Saudi Arabia. International Journal of Energy Economics and Policy, 7(6), 171-192.
• Gelb, A. H. (2010). Economic Diversification in Resource-Rich Countries. High-level seminar on Natural Resources, Finance, and Development: Confronting Old and New Challenges Organized by the Central Bank of Algeria and the IMF Institute in Algiers on 4-5 November 2010. Washington D.C.: International Monetary Fund.
• Greene, W.H. (1995). Econometric Analysis, Second Edition. New York: Prentice Hall Inc.
• Grossman, G. M., & Helpman, E. (1991). Innovation and Growth in the Global Economy. Cambridge: MIT Press.
• Hamdi, H., & Sbia, R. (2013). Dynamic Relationships Between Oil Revenues, Government Spending and Economic Growth in an Oil-Dependent Economy. Economic Modelling, 35, 118-125.
• Hvidt, M. (2013). Economic Diversification in GCC Countries: Past Record and Future Trends. LSE Research Online Documents on Economics 55252, London School of Economics and Political Science, LSE Library.
• Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. London: Macmillan.
• Lashitew, A. A., Ross, M. L., & Werker, E. (2021). What Drives Successful Economic Diversification in Resource-Rich Countries? The World Bank Research Observer, 36(2), 164-196.
• Lucas, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3-42.
• Mlaabdal, S., Chygryn, O., Kwilinski, A., Muzychuk, O. M., & Akimov, O. (2020). Economic Growth and Oil Industry Development: Assessment of the Interaction of National Economy Indicators. Proceedings of the 36th International Business Information Management Association, 4-5 November 2020, Granada, Spain.
• Nurunnabi, M. (2017). Transformation from an Oil-Based Economy to a Knowledge-Based Economy in Saudi Arabia: The Direction of Saudi Vision 2030. Journal of the Knowledge Economy, 8, 536-564.
• Phillips, P., (1995). Fully Modified Least Squares and Vector Autoregression. Econometrica, 63(5), 1023 – 1078.
• Rahman, A., De Giorgi, G., & Linjawi, S. A. (2018). Kingdom of Saudi Arabia Provincial Competitiveness Study. Washington D.C.: The World Bank.
• Ramady, M. A. (2010). The Saudi Arabian Economy: Policies, Achievements, and Challenges. New York: Springer Nature.
• Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5), 71-102.
• Samuelson, P. A., & Nordhaus, W. D. (2010). Economics. 19th Edition. New York: McGraw-Hill Education.
• Satti Osman Mohamed Nour, S. (2014). Prospects for Transition to a Knowledge-Based Economy in the Arab Region. World Journal of Science, Technology and Sustainable Development, 11(4), 256-270.
• Schwab, K. (2019). The Global Competitiveness Report. Geneva: The World Economic Forum.
• Sohail, M. S. (2012). Economic Diversification in Saudi Arabia: The Need for Improving Competitiveness for Sustainable Development. In: Ramady, M. (Eds), The GCC Economies: Stepping up to Future Challenges, (pp. 147-156). New York, NY: Springer.