Author:
Aziz Ghazala,Alsaggaf Majid Ibrahim,Khan Mohd Saeed
Abstract
The current empirical study addresses the recent economics of Saudi Arabia such as the uncertainty of economic growth and dependence on oil export. For this purpose, labor, capital, oil price, terrorism, military expenditure, tourism, and exports are added to the analysis. ARDL long-run and short-run analyses are used, and the results of the study have revealed that labor is negatively related to economic growth, which suggests that efforts should be done to reduce dependence on international labor through the installation of production facilities in those countries where labor is cheap. Also, it is noted that capital, tourism, and non-oil exports enhance economic growth, whereas oil price is the main problem for the economic growth of the country. These results suggest that the diversification of exports to non-oil products is a good strategy to boost economic growth. Alongside, domestic tourism should be promoted to enhance its share in economic activities. The current study helps the policy makers to open new earning avenues such as enhanced tourism sectors and modernized industries which help in technology exports.
Subject
General Environmental Science
Reference85 articles.
1. Making Market Research Work in Saudi Arabia;Aichner;Int. J. Market Res.,2019
2. Top-down Sustainable Urban Development? Urban Governance Transformation in Saudi Arabia;Aina;Cities,2019
3. Oil and Economic Development in the MENA Region: Why Institutions Matter;Akacem;Econ. Polit. Institutions Dev.,2019
4. The Impact of the Us on the Armament Process in the Context of Saudi Arabia’s Security Perceptions in the Post-Cold War Period;Akcapa;Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi,2019
5. The Impact of Financing on Economic Growth in Saudi Arabia;Al Mahish;Ijef,2016