Export and Economic Growth in Saudi Arabia: The Granger Causality Test


Saif Sallam Alhakimi

Abstract


An export-led growth strategy aims to encourage producers to export their goods through various economic and governmental policies. This study was carried out with the primary objective of investigating the relationship between exports and economic growth in the Kingdom of Saudi Arabia (hereafter referred to as the KSA), specifically by examining the causality between exports and KSA’s economic growth. There are four main propositions for the relationship between exports and economic growth: export-led growth (ELG), growth-driven exports (GDE), and feedback relationships between exports and economic growth. To complete this study, samples were used based on 37 years of annual data. The study also employed a unit root test, a co-integration test, and the Granger causality test to observe the causal relationship between exports and economic growth. Data were collected for exports, which were expressed according to export growth. Economic growth, meanwhile, was measured according to gross domestic product (GDP) per capita and expressed in terms of US dollars. The result of this study found that GDP per capita significantly influenced exports, while exports did not affect GDP.

Keywords


Growth, Export, Co-integration, Error-correction, Causality.

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About this article

Title

Export and Economic Growth in Saudi Arabia: The Granger Causality Test

Keywords

Growth, Export, Co-integration, Error-correction, Causality.

DOI

10.20448/journal.501.2018.51.29.35

Date

2018-01-30

Additional Links

Manuscript Submission

Journal

Asian Journal of Economics and Empirical Research
Vol 5, No 1 (2018) Page: 29-35

Print ISSN

2518-010X

Online ISSN

2409-2622

Statistics

138 Views | 142 Downloads

Citations

Authors & Affiliations

Saif Sallam Alhakimi
Associate Professor of International Economics, University of Bisha, Saudi Arabia, and University of Hodeida
Yemen


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Asian Journal of Economics and Empirical Research

 Online ISSN: 2409-2622 | Print ISSN: 2518-010X

 

 

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