An analysis of the effects of oil and non-oil export shocks on the Saudi economy

As the world’s largest oil exporter, Saudi Arabia faces same pressures as any other government to expand its economy. Vision 2030 is reduce country’s reliance on exports and revenues. One of main goals increase share GDP that does not come from oil. Dynamic autoregressive distributed lag (ARDL) cointegration used look at how goods than affect growth. The results dynamic ARDL simulation show there both long-term short-term between variables. tests rely presence a 1% in will boost Arabia’s economic growth by about 0.48% long run 0.18% short run, depending type time frame. In way, non-oil showed an would 0.26 percentage points 0.16 run. This good sign efforts diversify economy away make room for international investors help country reach goals. AcknowledgmentThis study supported via funding Prince Sattam bin Abdulaziz University project number (PSAU/2023/R/1444).