International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
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 Volume 11, Issue 11 (November 2024), Pages: 1-9

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 Original Research Paper

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

 Author(s): 

 Marwan Alghanmi *, Rozina Shaheen

 Affiliation(s):

 College of Business, Effat University, Jeddah, Saudi Arabia

 Full text

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-2678-4125

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.11.001

 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 Gross Domestic Product (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.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Economic growth, Sectoral value addition, Vision 2030, GDP growth, ARDL model

 Article history

 Received 8 June 2024, Received in revised form 21 September 2024, Accepted 19 October 2024

 Acknowledgment

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Alghanmi M and Shaheen R (2024). Sectoral value addition and its impact on economic growth in Saudi Arabia: An ARDL approach. International Journal of Advanced and Applied Sciences, 11(11): 1-9

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 Tables

 Table 1 Table 2 Table 3 Table 4

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