scholarly journals Is the impact of the Economic Diversification on Economic Growth Symmetric or Asymmetric? Evidence from Saudi Arabia

2021 ◽  
Vol 13 (10) ◽  
pp. 1
Author(s):  
Mohamed Ali Houfi
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Wald Test ◽  
Herfindahl Index ◽  
Solow Model ◽  
Economic Diversification ◽  
Asymmetric Effects ◽  
The Impact ◽  
Positive Effect

This paper presents our investigation of the impact of economic diversification on economic growth in Saudi Arabia for the 1990-2018 period. To this end, we used linear and nonlinear error-correction models (i.e., the ARDL, Pesaran et al. (2001), and NARDL, Shin et al. (2014), models) that are suited to capture the symmetric and asymmetric effects of economic diversification on economic growth based on the Solow model. As a measure of economic diversification, we used the Herfindahl index. In the linear and the nonlinear specifications, our results show that, economic diversification has a positive effect on the economic growth only in the long term. Furthermore, using the Wald test, the symmetric hypothesis in this relationship is not rejected, indicating that economic growth responds symmetrically to positive and negative changes in economic diversification. Our results also reveal that Saudi Arabia had relative success in achieving its goal of attaining a degree of economic diversification and enhancing its economic growth.

scholarly journals Measuring the Effect of the Internet on Economic Growth: The Case of Saudi Arabia

2020 ◽  
Vol 12 (12) ◽  
pp. 61
Author(s):  
Hisham J. Bardesi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Saudi Arabia ◽  
Internet Access ◽  
Ordinary Least Squares ◽  
The Internet ◽  
Macroeconomic Performance ◽  
The Impact

The purpose of this study is to examine and assess the impact of the Internet on economic growth in Saudi Arabia. Various studies show that there is a relationship between the growth rate of GDP and the Internet, as estimated by Internet user numbers. In this paper, the ordinary least squares (OLS) model is utilized to study the economic impact of Internet Access from 1994 to 2018, which has had a profound effect on the market structure of many sectors and Saudi’s global macroeconomic performance. The study constructs a model to investigate any significant impact of the Internet on the Saudi economy. Finally, this paper suggests that an understanding of the role of the Internet is essential for policymakers who plan to promote new forms of economic growth in the future. To take a long-term view implies working on technologies that could improve the economy and people’s lives by creating a technological ecosystem in and around Saudi Arabia, along with other major economies.

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.

scholarly journals The Impact of Financing on Economic Growth in Saudi Arabia

2016 ◽  
Vol 8 (8) ◽  
pp. 1
Author(s):  
Mohammed A AL Mahish
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Positive Impact ◽  
Wald Test ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Real Gdp Per Capita ◽  
The Arab Spring ◽  
The Impact

<p>This paper investigates the impact of the overall financing activities on economic growth in Saudi Arabia. The study developed a financing index that takes into account the overall available credit in Saudi Arabia. The index was shown to be sensitive to economic and political shocks such as the Arab Spring. Using Johnson cointegration approach, the paper found an evidence of long run relationship between real GDP per capita, financing, real interest real, public labor force, and capital. Using a vector error correction model, the paper found a robust estimate that proves the positive impact of financing on economic growth in Saudi Arabia. Furthermore, Granger-Causality Wald test indicates that financing influences economic growth in Saudi Arabia.</p>

scholarly journals Do coffee exports have impact on long-term economic growth of countries?

2019 ◽  
Vol 65 (No. 8) ◽  
pp. 385-393
Author(s):  
Theodore Murindahabi ◽  
Qiang Li ◽  
Eric Nisingizwe ◽  
E.M.B.P. Ekanayake
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Long Run ◽  
Auto Regressive ◽  
Coffee Sector ◽  
The Impact ◽  
Positive Effect

The present paper aims to investigate the impact of coffee exports on long-term economic growth in an open economy for 32 countries exporting coffee over the period of 1994–2013. The study applied a dynamic panel Auto-Regressive Distributive Lag (ARDL) modelling approach with estimators. All variables involved in the specified model were found to be stationary of order I (1) at a first difference. The Pooled Mean-Group (PMG) long-run results suggest the presence of a significant positive effect of coffee exports on economic growth. The empirical findings of the study suggest policy implications, promoting the coffee sector to boost the countries’ economy.

scholarly journals Financial Development, Institutions and Economic Growth in WAEMU Countries

2021 ◽  
Vol 13 (8) ◽  
pp. 40
Author(s):  
Abdou Khadre Dieng ◽  
Abdoulaye Camara
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
World Bank ◽  
Institutional Environment ◽  
Law And Order ◽  
Regulatory Quality ◽  
Development Institutions ◽  
The Impact ◽  
Positive Effect

This paper aims to study the impact of financial development and the institutional environment on economic growth in the countries of the WAEMU (West Africa Economic and Monetary Union) zone. We used a standard growth model like Eggoh (2010) with a cointegration technique on panel data. We used the 2017 World Bank database (World Bank data, 2017). The results showed that money supply to GDP (M2/GDP), domestic bank credit to GDP (CB/GDP) and regulatory quality (QR) have a positive and significant impact on long-term economic growth. However, the positive effect of respect for law and order is not significant.

scholarly journals The Impact of International Trade on Sustainable Development in Saudi Arabia

2020 ◽  
Vol 12 (13) ◽  
pp. 5421 ◽  
Author(s):  
Mounir Belloumi ◽  
Atef Alshehry
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Saudi Arabia ◽  
Environmental Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Annual Data ◽  
The Impact

This study examines the impact trade openness has on sustainable development in Saudi Arabia. It does so by employing the autoregressive distributed lag cointegration framework, using annual data over the period 1971 to 2016. Overall, the findings suggest the existence of a long-term relationship between trade openness and two indicators of sustainable development—are economic growth and environmental quality. Results indicate that trade openness does not affect both indicators of economic growth and environmental quality in the short-term. However, in the long-term, trade openness has a significant negative impact on economic growth when it is proxied by the variables the ratio of exports plus imports to GDP, and the ratio of exports to GDP; but a significant positive impact for the variable the ratio of imports to GDP. In addition, trade openness negatively affects environmental quality in the long-term. The tests used for diagnosing models show that they are valid, and thus, our findings are robust. Comprehensively, we find that trade openness could have led to the degradation of sustainable development in Saudi Arabia for the past fourteen years.

scholarly journals El proceso de urbanización y el crecimiento económico en México / The Process of Urbanization and Economic Growth in Mexico

2004 ◽  
Vol 19 (2) ◽  
pp. 289 ◽  
Author(s):  
Luis Miguel Galindo ◽  
Roberto Escalante ◽  
Norman Asuad
Keyword(s):  
Economic Growth ◽  
Rapid Urbanization ◽  
Econometric Methods ◽  
Impact Of Urbanization ◽  
Economic Concentration ◽  
High Level ◽  
The Impact ◽  
Siglo Xx ◽  
Positive Effect

El objetivo de este trabajo es analizar el impacto del proceso de urbanización en el crecimiento económico en México utilizando los métodos econométricos modernos. Los resultados obtenidos indican que existe una relación estable de largo plazo y positiva entre el producto, la inversión y un índice de urbanización. Ello indica que la inversión y el proceso de urbanización han favorecido el ritmo de crecimiento económico de México. En este sentido, el acelerado proceso de urbanización del país durante el siglo XX tuvo efectos positivos sobre el ritmo de crecimiento económico. Debe sin embargo considerarse que las características del proceso de urbanización en México se han traducido en un alto nivel de concentración económica, en particular en la Zona Metropolitana de la Ciudad de México, con costos crecientes para el crecimiento económico de largo plazo. Ello se refleja en un proceso de desconcentración de las megalópolis a zonas conurbadas en la década de los ochenta, que se ha estabilizado relativamente en los últimos años. AbstractThis article seeks to analyze the impact of urbanization on economic growth in Mexico, using modern econometric methods. The results obtained suggest that there is a stable, long-term positive relationship between the product, investment and the urbanization index. This suggests that investment and urbanization have contributed to the rate of economic growth in Mexico. In this respect, the country’s rapid urbanization in the 20th century had a positive effect on the economic growth rate. One should, however, recall that the characteristics of urbanization in Mexico have translated into a high level of economic concentration, particularly in the Mexico City Metropolitan Zone, with growing costs for long-term economic growth. This is reflected in the decentralization of megalopolises to conurbations during the 1980’s which has stabilized somewhat in recent years.

Solow economy model

2019 ◽  
pp. 150-157
Author(s):  
Oleksandr Synenko ◽  
Kateryna Yarema ◽  
Yuliia Bezsmertna
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Solow Model ◽  
Economy Model ◽  
Accelerated Depreciation ◽  
Basic Parameters ◽  
The Subject ◽  
Investment Process ◽  
The Impact ◽  
Model Algorithm

The subject of the research is the approach to the possibility of using the Solow model to perform the regression analysis on the example of the Ukrainian economy model. The purpose of writing this article is to investigate the notion of regres- sion analysis, Solow’s economy model, algorithm for performing regression analy- sis on the example of Ukraine’s economy model. This model can be adapted for the economy of enterprises. Methodology. The research methodology is system-struc- tural and comparative analyzes (to study the structure of GDP); monograph (when studying methods of regression analysis on the example of the Ukrainian economy); economic analysis (when assessing the impact of factors on Ukraine’s GDP). The scientific novelty consists the features of the use of the Solow model on the ex- ample of Ukrainian economy are determined. An algorithm for calculating the basic parameters of a model using the Excel application package is disclosed. The main recommendations on the development of the national economy and economic growth through the use of macroeconomic instruments are given. Conclusions. The use of the Solow model enables forecasting and analysis. The results obtained re- vealed the problem of low resource return of capital as a resource, along with the means of macroeconomic regulation of the investment process, using which can improve the situation. A special place in these funds belongs to the accelerated depreciation and interest rate policies.

PENGARUH INFRASTRUKTUR SECARA SPASIAL TERHADAP KONVERGENSI PERTUMBUHAN EKONOMI DI INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 1 ◽  
pp. 17-28
Author(s):  
Anisa Fahmi
Keyword(s):  
Economic Growth ◽  
Regional Economics ◽  
Developed Countries ◽  
Road Infrastructure ◽  
Long Run ◽  
Catch Up ◽  
The Developed Countries ◽  
Positive Effect ◽  
Neoclassical Growth Theory

Motivated by inter-regional disparities condition that occurs persistently, this study examines the Indonesian economy in the long run in order to know whether it tends to converge or diverge. This convergence is based on the Solow Neoclassical growth theory assuming the existence of diminishing returns to capital so that when the developed countries reach steady state conditions, developing countries will continuously grow up to 'catch-up' with developed countries. Based on regional economics perspective, each region can not be treated as a stand-alone unit,therefore, this study also focuses on the influence of spatial dependency and infrastructure. Economical and political situations of a region will influence policy in that region which will also have an impact to the neighboring regions. The estimation results of spatial cross-regressive model using fixed effect method consistently confirmed that the Indonesian economy in the long term will likely converge with a speed of 8.08 percent per year. Other findings are road infrastructure has a positive effect on economic growth and investment and road infrastructure are spatially showed a positive effect on economic growth. In other words, the investment and infrastructure of a region does not only affect the economic growth of that region but also to the economy of the contiguous regions. 

scholarly journals The Demerger Impact upon Sustainable Development of Economic Entities: Evidence from Romania

2021 ◽  
Vol 13 (15) ◽  
pp. 8316
Author(s):  
Camelia Mirela Baba ◽  
Constantin Duguleană ◽  
Marius Sorin Dincă ◽  
Liliana Duguleană ◽  
Gheorghița Dincă
Keyword(s):  
Sustainable Development ◽  
Business Strategies ◽  
The Sustainable Development ◽  
Ex Post ◽  
Before And After ◽  
Almost All ◽  
The Impact ◽  
Profitability Ratios ◽  
Positive Effect

The Covid-19 induced economic crisis has significantly affected almost all businesses from nearly every sector, causing severe financial problems, lack of cash assets, and decrease of revenues. In this context, the economic entities were forced to look for adjustment and rescue solutions of their activities. One possible solution for the recovery and reorganization of economic entities’ activities is demerger. This paper evaluates the impact of demerger upon the sustainable development of economic entities in terms of economic efficiency and financial performances. To achieve this goal, a statistical analysis of profitability ratios before and after the demerger, as well as a structural analysis of 268 demerger projects for the April 2012–April 2021 period, were performed. The results attest there are no significant differences between the ex-ante and ex-post financial performances. However, demerger seems to have a positive effect upon analyzed companies helping them to overcome economic hardships, rethink their business strategies, and continue their activity in the medium and long-term time horizon.

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