مجلة الاقتصاد والبيئة
Volume 9, Numéro 1, Pages 281-295
2026-05-01

Trade Openness And Economic Growth In Saudi Arabia: An Ardl Approach

Authors : Alharbi Abdullah .

Abstract

This study examines the relationship between trade openness and economic growth in Saudi Arabia using an autoregressive distributed lag (ARDL) approach applied to annual data for 1970–2023. Real GDP per capita is modeled as a function of trade openness, physical capital, and human capital. The ARDL bounds test indicates the existence of a long-run relationship among the variables. However, the estimated long-run elasticities are not statistically significant. In contrast, short-run results show that lagged changes in trade openness and physical capital have positive and statistically significant effects on real GDP per capita, while the error-correction term confirms gradual adjustment toward equilibrium.

Keywords

Trade openness ; Economic growth ; ARDL model ; Cointegration ; Error-correction ; Saudi Arabia