Trade Openness, Government Consumption, and Economic Growth Nexus in Saudi Arabia: ARDL Cointegration Approach

Islam, Md. Saiful; Alsaif, Saleh; Alsaif, Talal

doi:10.1177/21582440221096661

Cited by 21 publications

(15 citation statements)

References 48 publications

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“…Meanwhile, the table's findings suggest that gross capital formation, labor force, trade openness, R&D expenditure, and foreign direct investment are all indicators of GDP. These outcomes are consistent with Ntamwiza and Masengesho [90], Islam et al [91], Usman et al [92], Boeing et al [93], and Iqbal et al [94]. Furthermore, we also find that renewable energy consumption can indirectly affect economic growth via five kinds of channels.…”

Section: Indirect and Direct Economic Effects Of Renewable Energy Con...supporting

confidence: 91%

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Huang

2022

Sustainability

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Renewable energy’s economic effects have been hotly debated, as it is a promising energy source. However, scholars have not achieved an agreement on this hot topic. Therefore, this article re-examines the direct and indirect economic effects of renewable energy consumption in China from 1990 to 2020. Using the Granger causality test to conduct empirical analysis, the result suggests there is a bidirectional causality between renewable energy consumption and economic growth. Then, the mediation model is used for further analysis. The results suggest that economic growth is positively affected by renewable energy consumption. Meanwhile, renewable energy consumption can also indirectly affect economic growth through gross capital formation, the labor force, trade openness, research and development expenditure, and foreign direct investment. Based on the evidence this article provides, policymakers can issue corresponding policies to maintain sustainable economic growth while minimizing environmental pollution.

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Section: Indirect and Direct Economic Effects Of Renewable Energy Con...supporting

confidence: 91%

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Huang

2022

Sustainability

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“…It is also recommended that governments in developing nations strengthen their ability to obtain financial flows that facilitate knowledge transfers in order to increase trade-growth outcomes. Islam, Alsaif, and Alsaif (2022) examined Saudi Arabia's relationship between commercial liberalization, government consumption, and economic growth. This study used the ARDL, TY Granger casualty, unit test, diagnostic exam, and TD casualty test to span the years 1985 to 2019.…”

Section: Literature Reviewmentioning

confidence: 99%

An Overview of Foreign Direct Investment and Green Growth in OIC Countries

Syed,

Arshad,

Rahman

et al. 2024

Pak. J. Humanit. Soc. Sci

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The firstly purpose is to critically evaluate the impact of trade, labor force and capital establishment and foreign investment (FDI) upon eco-friendly green growth in OIC nations. The available theoretical and empirical literature on the subject is examine and summarize in this work. Secondly, the literature is identified by drawing on the hypothetical theoretic and pragmatic perceptions found in broadcasted literature. Furthermore, this analysis paper clarified theoretical approaches that explain the workings of these approaches. Thirdly, this paper suggests three productive areas for more study. First, export earnings represent a significant source of foreign exchange, which is essential when local savings are insufficient to enable capital goods imports. Second, an increase in exports may also indicates an upsurge in the market’s size, bringing significant economies to fasten the pace of technological advancement on capital formation. At third, policies that are focused outward are thought to boost economic growth because they may boost an economy's total productivity and efficiency through productivity spillovers from importing more sophisticated technology or by drawing foreign direct investment.

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“…Burange et al (2019) studied the BRICS nations and found a causal relationship between trade openness and GDP growth in India, China, and South Africa, but not in Russia. M. S. Islam et al (2022) found a unidirectional relationship between government spending and trade openness in Saudi Arabia using Autoregressive Distributed Lag and Toda-Yamamoto causality tests. Studies such as those by Benarroch & Pandey (2008; suggest that the relationship between trade openness and the size of government is not very strong.…”

Section: Figure 1 Economic Complexity Rank Of Russian Versus Neighbou...mentioning

confidence: 99%

Impact of Trade and Capital Openness on the Government Size of Russia

Mehta

2023

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Relevance: With Russia's economy and trade growing significantly since 2014, there is a need to examine the impact of economic openness on government expenditure, given the country's fiscal and trade reforms. Research Objective: This study aims to measure the impact of economic openness on government expenditure (government size) by categorizing it into trade and capital openness. The Auto Regressive Distributed Lag (ARDL) model is used to measure the long-run and short-run impact of economic openness on government size. Data and Methods: Annual time series data from the World Bank Open Data on World Development Indicators (WDI) from 1997 to 2021 is used. The study examines the relationship between government expenditure, trade openness, and capital openness. Results: The findings show that higher trade openness leads to a significant increase in government size, while more capital openness results in a reduction in the size of the government. The study also highlights the impact of current account deficits and national income on government size, with liberal trade policies leading to a widening current account deficit. The positive correlation between national income and government size supports Wagner's Law of "Increasing State Activity." Conclusion: The study suggests that policymakers should adopt a careful approach to liberal policies that encourage trade and capital openness, as an overly liberalized approach could harm macroeconomic factors such as fiscal and current account balances. The study also underscores the challenges that nations like Russia face when entering the global markets for goods beyond oil exports.

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Trade Openness, Government Consumption, and Economic Growth Nexus in Saudi Arabia: ARDL Cointegration Approach

Cited by 21 publications

References 48 publications

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

An Overview of Foreign Direct Investment and Green Growth in OIC Countries

Impact of Trade and Capital Openness on the Government Size of Russia

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