Exploration of the Effect of Oil and Non-Oil Export on Economic Growth in the Kingdom of Saudi Arabia [post]

Uzma Khan, Aarif Mohammad Khan, Md. Shabbir Alam
2020 unpublished
The tactical master plan for the Kingdom of Saudi Arabia aims to resolve the Kingdom's economy from its reliance on oil revenues by diversifying its economy. Therefore, this research explores the impact of oil and non-oil export revenue on economic growth. Unit root test analysis illustrates that the series becomes stationary when level and first difference is considering and having a one lag length. Johansen co-integration test indicates the presence of both periods among the models. The
more » ... e models. The outcomes indicate a short-run causal effect from both oil and non-oil export to economic growth. Additionally, Impulse Response Function and Variance Decomposition also indicated that non-oil export revenue could act better than the revenue generated by oil export. However, the granger causality test indicates no causal relationship among any parameters. Policies recommend that by promoting the non-oil export will enhance the economic progress.
doi:10.21203/rs.3.rs-68487/v1 fatcat:yi62g3bfdbfg5irqiwle4rgifq