The Linkage between Oil and Non-Oil GDP in Saudi Arabia
Saudi Arabia is one of the world’s major producers of oil. The Saudi Government has launched its vision for the coming decade: Saudi Vision 2030 (also known as 2030 Vision). Saudi Vision 2030 aims to diversify economic income and be independent of oil revenue. The focus of Saudi Vision 2030 is incre...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/9/4/202 |
| _version_ | 1797505329304436736 |
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| author | Sami Alabdulwahab |
| author_facet | Sami Alabdulwahab |
| author_sort | Sami Alabdulwahab |
| collection | DOAJ |
| description | Saudi Arabia is one of the world’s major producers of oil. The Saudi Government has launched its vision for the coming decade: Saudi Vision 2030 (also known as 2030 Vision). Saudi Vision 2030 aims to diversify economic income and be independent of oil revenue. The focus of Saudi Vision 2030 is increasing the role of the non-oil GDP in the economy. In this study, I tried to examine the link between oil and non-oil GDP in Saudi Arabia. I used autoregressive distributed lag (ARDL) cointegration, the most common tool used to examine linkages among variables. My ARDL results confirm the long-term cointegration between non-oil GDP and oil rent, thus implying that oil rent-seeking strategies still exist in Saudi Arabia. The short-term dynamics confirmed the impact of oil rent over the non-oil GDP. The ARDL results led to analyses of asymmetric effects. The NARDL model estimated and confirmed the symmetric effect of the oil rent on non-oil GDP. These results demonstrate the challenges in diversifying Saudi Arabia’s income. |
| first_indexed | 2024-03-10T04:17:04Z |
| format | Article |
| id | doaj.art-7833645c9e374811b034437a33b71f9b |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-10T04:17:04Z |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-7833645c9e374811b034437a33b71f9b2023-11-23T07:59:21ZengMDPI AGEconomies2227-70992021-12-019420210.3390/economies9040202The Linkage between Oil and Non-Oil GDP in Saudi ArabiaSami Alabdulwahab0Department of Economics, College of Business Administration, King Faisal University, Al-Ahas 31982, Saudi ArabiaSaudi Arabia is one of the world’s major producers of oil. The Saudi Government has launched its vision for the coming decade: Saudi Vision 2030 (also known as 2030 Vision). Saudi Vision 2030 aims to diversify economic income and be independent of oil revenue. The focus of Saudi Vision 2030 is increasing the role of the non-oil GDP in the economy. In this study, I tried to examine the link between oil and non-oil GDP in Saudi Arabia. I used autoregressive distributed lag (ARDL) cointegration, the most common tool used to examine linkages among variables. My ARDL results confirm the long-term cointegration between non-oil GDP and oil rent, thus implying that oil rent-seeking strategies still exist in Saudi Arabia. The short-term dynamics confirmed the impact of oil rent over the non-oil GDP. The ARDL results led to analyses of asymmetric effects. The NARDL model estimated and confirmed the symmetric effect of the oil rent on non-oil GDP. These results demonstrate the challenges in diversifying Saudi Arabia’s income.https://www.mdpi.com/2227-7099/9/4/202ARDL cointegrationNARDLnon-oil GDPSaudi Arabia |
| spellingShingle | Sami Alabdulwahab The Linkage between Oil and Non-Oil GDP in Saudi Arabia Economies ARDL cointegration NARDL non-oil GDP Saudi Arabia |
| title | The Linkage between Oil and Non-Oil GDP in Saudi Arabia |
| title_full | The Linkage between Oil and Non-Oil GDP in Saudi Arabia |
| title_fullStr | The Linkage between Oil and Non-Oil GDP in Saudi Arabia |
| title_full_unstemmed | The Linkage between Oil and Non-Oil GDP in Saudi Arabia |
| title_short | The Linkage between Oil and Non-Oil GDP in Saudi Arabia |
| title_sort | linkage between oil and non oil gdp in saudi arabia |
| topic | ARDL cointegration NARDL non-oil GDP Saudi Arabia |
| url | https://www.mdpi.com/2227-7099/9/4/202 |
| work_keys_str_mv | AT samialabdulwahab thelinkagebetweenoilandnonoilgdpinsaudiarabia AT samialabdulwahab linkagebetweenoilandnonoilgdpinsaudiarabia |