مجلة إضافات إقتصادية
Volume 10, Numéro 1, Pages 642-659
2026-03-27

Non-resource Economic Growth And Productivity In Saudi Arabia

Authors : Alharbi Abdullah .

Abstract

This paper examines the sources of economic growth and total factor productivity (TFP) in Saudi Arabia over 1980–2019. Using a standard production-function framework with capital and labor, non-oil output growth is decomposed into factor accumulation and productivity components. The results show that growth has been driven mainly by capital accumulation, while labor contributions are modest. TFP growth is weak and declining. Regression results indicate that short-run macroeconomic variables have limited explanatory power for TFP, while productivity exhibits strong persistence. These findings point to structural constraints and the need for productivity-enhancing reforms under Vision 2030. Keywords: Economic growth; Total factor productivity; Growth accounting; Non-resource GDP; Trade openness; Saudi Arabia.

Keywords

Economic growth ; Total factor productivity ; Growth accounting ; Non-resource GDP ; Trade openness ; Saudi Arabia