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The three-ways linkages between domestic investment, exports and economic growth: new evidence from Saudi Arabia

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  • Sayef BAKARI

    (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.

Suggested Citation

  • Sayef BAKARI, 2025. "The three-ways linkages between domestic investment, exports and economic growth: new evidence from Saudi Arabia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(642), S), pages 37-58, Spring.
    • Handle: RePEc:agr:journl:v:xxxii:y:2025:i:1(642):p:37-58
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    References listed on IDEAS

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    6. Nadia Ben Yedder & Malek El Weriemmi & Sayef Bakari, 2023. "The Impact of Domestic Investment and Trade on Economic Growth in North Africa Countries: New Evidence from Panel CS-ARDL Model," EuroEconomica, Danubius University of Galati, issue 2(42), pages 22-41, November.
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    9. Sayef Bakari & Sofien Tiba & Nissar Fakraoui, 2019. "Does Domestic Investment Contribute To Economic Growth In Uruguay? What Did The Empirical Facts Say?," Journal of Smart Economic Growth, , vol. 4(2), pages 53-69, September.
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