Analyzing and Measuring the Impact of the Manufacturing Sector Indicators on Economic Growth in the Kingdom of Saudi Arabia for the Period (2000-2021)

Abdulaziz, Farhad A.; Rasheed, Khamy N

doi:10.33899/tanra.2022.136745.1252

	Analyzing and Measuring the Impact of the Manufacturing Sector Indicators on Economic Growth in the Kingdom of Saudi Arabia for the Period (2000-2021)
TANMIYAT AL-RAFIDAIN
Volume 42, Issue 138, 2023, Pages 151-174 PDF (1.16 M)
Document Type: Research Paper
DOI: 10.33899/tanra.2022.136745.1252
Authors
Farhad A. Abdulaziz^* ; Khamy N Rasheed
Department of Economics, College of Administration and Economics, University of Duhok, Duhok, Iraq
Abstract
The present study aimed to investigate the relationship between manufacturing indicators and economic growth by using the Autoregressive Distributed Deceleration (ARDL) methodology to analyze manufacturing industry indicators and their impact on the Kingdom of Saudi Arabia's economic growth during the period (2000–2021). Only the short-term component of the independent variable, the number of manufacturing facilities, has a direct impact on the dependent variable, short-term economic growth. Regarding the long-term relationship between manufacturing industry indicators and economic growth, the explanatory variables (manufacturing sector added value, manufacturing sector labor productivity, manufacturing sector exports, and manufacturing establishment number) have a significant direct effect at the level of 5%, while the parameter of the variable (employment in the manufacturing sector) was significant in the long-term. In conclusion, the research came to some suggestions, including that the decision-maker pay attention to the industrial sectors and take into account the long-term dangers associated with the global oil markets.
Keywords
Manufacturing; Economic Growth; Auto Regressive Distributed Lag (ARDL)

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