Oil Exports and Economic Growth: An Empirical Evidence from Saudi Arabia

Authors

  • Zafar Ahmad Sultan Babasaheb Bhim Rao Ambedkar Bihar University, Muzaffarpur, Bihar, India
  • Mohammad Imdadul Haque

Abstract

Being oil-based economy, the economic prosperity of Saudi Arabia to a large extent depends upon international price of crude oil. Since substantial portion of government revenue and foreign exchange which determine the economic activities of the government and fulfill the import requirements of the country comes from oil exports, any disturbance in this sector is likely to affect entire economy of Saudi Arabia. The paper applied Johansen cointegration method and vector error correction model (VECM) to estimate long run relationship of economic growth with oil exports, imports and government consumption expenditure. The study has found that economic growth has long run relationship with oil exports, imports and consumption expenditure of the government. The study recommends monitoring and regulating imports and intensive efforts to diversify economic base in exports as well as import substituting industries of the country.Keywords: Oil Export, Economic Growth, Causality, Saudi ArabiaJEL Classifications: C22, F14, H50, N15

Downloads

Download data is not yet available.

Downloads

Published

2018-09-05

How to Cite

Sultan, Z. A., & Haque, M. I. (2018). Oil Exports and Economic Growth: An Empirical Evidence from Saudi Arabia. International Journal of Energy Economics and Policy, 8(5), 281–287. Retrieved from https://econjournals.com/index.php/ijeep/article/view/6688

Issue

Vol. 8 No. 5 (2018)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.