Theoretical and Applied Economics
No. 1 / 2025 (642), Spring
The three-ways linkages between domestic investment, exports and economic growth: new evidence from Saudi Arabia
University of Tunis El Manar, Tunisia
Abstract. This research paper aims to investigate the relationships between domestic investment, exports, and economic growth in Saudi Arabia from 2000 to 2021. Using cointegration and vector error correction model analyses, six key findings have emerged. Firstly, neither domestic investment nor exports have a significant long-term impact on economic growth. Secondly, long-term domestic investment does not significantly influence exports, and vice versa. Regarding long-term dynamics, the research reveals that economic growth and domestic investment positively influence exports over an extended period. Additionally, domestic investment and exports serve as causal factors for shortterm economic growth. Furthermore, short-term relationships exist where economic growth and exports stimulate domestic investment, albeit with relatively weaker significance. Finally, the results highlight that economic growth and domestic investment jointly foster short-term export expansion. The research suggests the need to investigate additional economic, political, and structural factors beyond domestic investment and exports to better understand and enhance long-term economic growth in Saudi Arabia.
Contents
The impact of agro-food imports from Ukraine on the Romanian market: a post-conflict economic analysis
An empirical analysis of foreign trade concentration between Türkiye and Egypt (2005-2023)
The three-ways linkages between domestic investment, exports and economic growth: new evidence from Saudi Arabia
Local resilience in the context of digital transition: development policy perspectives from Romania and Moldova
Customs unions and trade spillovers: from bilateral agreements to multilateral impact
The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis
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