scholarly journals The Impact of Economic Growth on Unemployment Case study:  The King of Saudi Arabia during the period 1980- 2018: أثر النمو الاقتصادي على البطالة- دراسة حالة المملكة العربية السعودية خلال الفترة: 1980- 2018م

2020 ◽  
Vol 4 (6) ◽  
Author(s):  
Abbas Fouad Abbas Hasan
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Primary Source ◽  
Strong Relationship ◽  
Economic Policies ◽  
Negative Effects ◽  
Kingdom Of Saudi Arabia ◽  
Causality Test ◽  
Integration Test ◽  
The Impact

The study seeks to analyze and measure the relationship between rates of unemployment and economic growth in the Kingdom of Saudi Arabia during the period 1980- 2018 and stand on the economic measures by the authorities to address the negative effects of high unemployment rates using the correlation matrix, Granger causality test, the methodology of the Co- integration test, error correction model and Okun model. The study found that there is strong relationship between economic growth and the unemployment rate in the Kingdom of Saudi Arabia during the study period.  The study depends on the data from the Saudi Arabian Monetary Agency (SAMA)، the World Bank and other resources. One of the most important hypotheses of the study there is statistically significant relationship between economic growth and unemployment. The study recommended several recommendations one of them is: develop new economic policies to reduce dependence on oil as a primary source of revenue reducing inflation and working to increase investments, which leads to an increase in the size of the labor market. 

scholarly journals Exploration of the Effect of Oil and Non-Oil Export on Economic Growth in the Kingdom of Saudi Arabia

2020 ◽  
Author(s):  
Uzma Khan ◽  
Aarif Mohammad Khan ◽  
Md. Shabbir Alam
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Causal Effect ◽  
Growth Unit ◽  
Kingdom Of Saudi Arabia ◽  
Causality Test ◽  
Integration Test ◽  
Oil Export ◽  
Export Revenue ◽  
The Impact

Abstract 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 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.

scholarly journals The Role of Tourism in Economic Growth: Empirical Evidence from Saudi Arabia

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 117
Author(s):  
Sana Naseem
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Time Series Data ◽  
Unit Root Test ◽  
Strong Relationship ◽  
Series Data ◽  
Kingdom Of Saudi Arabia ◽  
Causality Test ◽  
Integration Test

Tourism is vital to the success of many economies worldwide and has been a widely researched area for many years. Unfortunately, an insufficient number of studies have been conducted on this subject in the context of Saudi Arabia. Therefore, this research investigates the role of tourism in promoting economic growth in the Kingdom of Saudi Arabia by using annual time series data from 2003 to 2019. The study uses basic statistics, correlation coefficients, the unit root test, the Johansen co-integration test, the co-integration regression test and the Granger causality test to check the relationship between tourism and economic growth. The results show that economic growth has a long-run relationship with tourism receipts, tourism expenditures and the number of tourist arrivals; the number of tourist arrivals has a strong relationship with economic growth, compared to other parameters. The empirical results validate the concept that tourism promotes economic growth in the kingdom of Saudi Arabia.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

scholarly journals The Impact of Manufacturing Industries on Economic Growth in the Kingdom of Saudi Arabia during (1990- 2018): أثر الصناعات التحويلية على النمو الاقتصادي في المملكة العربية السعودية  للفترة (1990- 2018)

2020 ◽  
Vol 4 (3) ◽  
Author(s):  
Reem Saeed Al- Ghamdi, Maha Alandejani
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Manufacturing Industries ◽  
Series Data ◽  
Short Term ◽  
Kingdom Of Saudi Arabia ◽  
Unit Root Testing ◽  
Oil Exports ◽  
The Impact

The study examined the effect of the impact of manufacturing industries on the economic growth in the Kingdom of Saudi Arabia، and to analyze the size of manufacturing growth and its contribution to economic growth. This study is based on the descriptive analytical approach to identify the development of manufacturing industries in Saudi Arabia and the size of its impact on the growth of the Saudi economy and also based on the methodology of standard analysis using time series data، and the application of unit root testing and common integration and multiple linear regression by applying an Ordinary Least Square (OLS)، to examine the relationship between the rate of economic growth، the rate of GDP of manufacturing، the rate of oil exports، the rate of industrial loans، and the rate of exports of manufacturing industries. The results indicate to negative impact of manufacturing industries، oil exports and industrial exports on economic growth in the long term، despite their positive impact in the short term and the existence of a direct correlation between the rate of growth of oil exports and economic growth in the short term، and the inverse relationship of industrial loans and industrial exports on economic growth. The study summarized several recommendations، including that decision-makers need to pay attention to manufacturing industries and oil exports taking into account the long- term risks of global oil markets and import prices، and the adoption of more extensive policies with regard to industrial loans and maximize industrial exports to affect economic growth positively.

Impact of non-oil sectors on GDP/capita in selected African countries: evidence from panel analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluyemi Theophilus Adeosun ◽  
Isaac Idris Gbadamosi
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
African Countries ◽  
Causality Test ◽  
Content Type ◽  
Development Indicators ◽  
Agriculture Industry ◽  
Integration Test ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact or contribution of non-oil sectors on economic growth (GDP/capita) of some selected African countries using panel data analysis.Design/methodology/approachThe paper focused on secondary data for the period 1991–2019 for macro parameters, including agriculture, industry, export and service, and GDP/capita received from World Development Indicators (WDI). Panel unit root tests like Levin, Lin and Chu test and Im, Pesaran and Shin test, Johansen co-integration test, Granger causality test and an error correction model were also applied to the data for analysis.FindingsThe study reveals no causality from agriculture to economic growth, which implies most of the African countries (used in this study) have neglected agriculture as a source of economic growth. The industry independent variable was of no effect on these countries’ economic growth, whereas the findings reveal that industry has causality on economic growth. Economic growth has no causality on the industry, which means the industry is not contributing to economic growth. The study also shows no causality from export and service to economic growth, but a causality runs from economic growth to export and service.Originality/valueThe paper examines the contribution of the non-oil sectors to economic growth in selected African countries.

scholarly journals Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

2017 ◽  
Vol 24 (03) ◽  
pp. 04-26
Author(s):  
Lien Nguyen Phuong ◽  
Thanh Su Dinh
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Tax Revenue ◽  
Dynamic Panel ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.

Is Fiscal Deficit Essential for Stimulating Economic Growth in Developing Economies? Theory and Empirical Evidence from India

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Negative Impact ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

The primary purpose of this paper was to assess the impact of fiscal deficit on the economic growth of the Indian economy and find out the causality between fiscal deficit and economic growth from 1981-82 to 2019-20. To analyse the long-run relationship between the variables Johansen Co-integration test was used; after verifying the existence of long-run relationship among variables, the Vector Error Correction Model (VECM) was used, and the Granger Causality test was also used for investigating the direction of causality between pair of variables. The findings of the study supported the ideology of classical economists in which they neglected the government intervention for the growth and development of an economy. The results showed that in long run, fiscal deficit had a significant negative impact on economic growth as one percent increase in fiscal deficit demoted the GDP growth rate by 0.075 percent, whereas in the short run, the impact was also found negative, but it was significant only one lag. Simultaneously, there was unidirectional causality found from fiscal deficit to GDP growth.

scholarly journals Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach

2021 ◽  
Vol 13 (3) ◽  
pp. 1349
Author(s):  
Yong Su ◽  
Jacob Cherian ◽  
Muhammad Safdar Sial ◽  
Alina Badulescu ◽  
Phung Anh Thu ◽  
...  
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Empirical Support ◽  
Strong Relationship ◽  
Tourism Industry ◽  
Causality Test ◽  
Data Set ◽  
Economic Development And Growth ◽  
The Impact

The main purpose of the current study is to investigate if tourism affects economic growth of China. The data set has been acquired from the Beijing Municipal Bureau of Statistics, and the time span of the data set takes into account a 20-year time period, from 2000 to 2019. To determine the strength of the above-mentioned relationship previous models that have been used for this research are mainly VAR (vector auto-regression) and VECM (vector error correction) models. The VAR and VECM models have been conducted together with the Granger causality test. The internal revenue generated from tourism-related activities is taken as being the main indicator for the tourism industry, while economic growth is determined by GDP (gross domestic product). We support the above-mentioned notion, as we found that a strong relationship exists between the development of the tourism industry and economic growth. Moreover, our analysis also indicates that this industry has a major impact on long-term economic growth in the region as well. This study thus provides further support to the existing literature on the topic of tourism and the impact that tourism-related activities have upon economic development and growth. The existence and the impact of tourism-related activities upon long-term economic growth were confirmed by the results of the VAR models. At the same time, the unidirectional results of VECM models have confirmed the existence of economic growth in the short term. In our case, the cardinal relationship between the development of the tourism industry and the economic growth in the Beijing region of China have managed to provide strong empirical support to the earlier stated notions and to the literature alike.

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