Work

Sectoral value addition and its impact on economic growth in Saudi Arabia: An ARDL approach

Year: 2024

Type: article

Abstract: Saudi Arabia is working to reduce its reliance on oil by diversifying its economy, making it important to understand how different sectors contribute to GDP growth. This research explores the connection between sectoral value addition and economic growth in Saudi Arabia, using data from 1980 to 2022. The aim is to identify which sectors can support long-term economic growth in line with the goals of Vision 2030. The study uses the autoregressive distributed lags (ARDL) model to analyze the yearly growth rates of value addition in different sectors and their impact on GDP growth. The results show that the construction, mining, services, and financial sectors have a positive and significant effect on economic growth. These findings highlight key sectors that influence GDP growth, suggesting that targeted investments and policy measures in these areas could strengthen economic stability and sustainability. The study emphasizes the need to promote growth in a variety of sectors to meet the broader economic aims of Vision 2030.

Source: International Journal of ADVANCED AND APPLIED SCIENCES

DOI: 10.21833/ijaas.2024.11.001

Authors: Marwan Alghanmi, Rozina Shaheen

Institution: Effat University

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $469