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Estimating GDP Growth in Saudi Arabia Under the Government’s Vision 2030: a Knowledge-based Economy Approach

Author

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  • Amina Amirat

    (University of Jeddah)

  • Makram Zaidi

    (Imam Abdulrahman Bin Faisal University)

Abstract

A knowledge-based economy is one where the generation and utilization of knowledge contribute significantly to economic growth and wealth creation. Thus, the economy must be characterized by knowledge-based activities and high-tech industries accounting for a significant share of GDP growth. Under the Vision 2030, Saudi Arabia is moving from oil-based economy to knowledge-based economy. Hence, the identification of components of knowledge economy is very important to understand its influence on macroeconomic variables such as gross domestic product (GDP). In this paper, we choose five components for knowledge economy: employment, education, innovation, ICT, and human capital. Using annual data from 1991 to 2017, we estimate the GDP growth and we find that GDP can be estimated by scientific and technical journal articles, mean age of education, mobile telecommunication revenues, unemployment rate, and HD index. We also find that predicted GDP behaves as an observed one with quite difference in values which can be explained by the impact of other economic factors on GDP.

Suggested Citation

  • Amina Amirat & Makram Zaidi, 2020. "Estimating GDP Growth in Saudi Arabia Under the Government’s Vision 2030: a Knowledge-based Economy Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1145-1170, September.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:3:d:10.1007_s13132-019-00596-2
    DOI: 10.1007/s13132-019-00596-2
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    2. Nusrat Hafiz & Ahmad Shaharudin Abdul Latiff & Md Asadul Islam & Abu Naser Mohammad Saif & Sazali Abd Wahab, 2022. "Towards the Underlying Theories of Small Firm Growth: A Literature Review," FIIB Business Review, , vol. 11(1), pages 36-51, March.
    3. Voxi Heinrich Amavilah & Antonio Rodriguez Andres, 2022. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Working Papers 57, The German University in Cairo, Faculty of Management Technology.
    4. Mariia Ostapchuk & Claire Auplat & Pierre Boucard, 2023. "Economic Growth and Scientific Knowledge as Determinants of Innovation Uptake in a Situation of Uncertainty About Environmental or Health Risk," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1602-1634, June.

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    More about this item

    Keywords

    Education; Employment GDP; ICT; Innovation; Knowledge economy; Regression;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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