International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Since Year 2012 | Open Access | Double Blind Reviewed

ISSN: 2319-7064




Downloads: 117

Research Paper | Economics | Saudi Arabia | Volume 3 Issue 8, August 2014


Inter-Sectoral Linkages and Economic Growth in Saudi Arabia: Toward a Successful Long-term Development Strategy

Abdulkarim K. Alhowaish | Faez S. Al-shihri | Sayed M.S. Ahmed


Abstract: The main objective of this research paper is to investigate the causal relationship between sectoral development (namely: agriculture, oil, industry and services sectors) and economic growth in Saudi Arabia over the period 1970 to 2012 using multivariate econometric analysis approach. Real GDP is used as proxy for economic growth; value added for agriculture, oil and gas, industry and services sectors is used as proxy for inter-sectoral development. The results suggest that there exists bidirectional causality among the sectoral output of Saudi economy at least in the short run. The findings of this study suggest that the income of Saudi economy largely depends on the income generating from services and industrial sectors, and the income growth of these two sectors, in turn, depends on growth of oil and gas sector. The findings also revealed that the income growth of agricultural sector largely depends on growth of industrial sector. The overall research outcomes also suggest that the oil and gas sector continue to be the dominant driver of other sectoral output growth.


Keywords: Sectoral Development, Economic Growth, Saudi Arabia, Multivatiare Econometric Analysis Approach


Edition: Volume 3 Issue 8, August 2014,


Pages: 1654 - 1659


How to Cite this Article?

Abdulkarim K. Alhowaish, Faez S. Al-shihri, Sayed M.S. Ahmed, "Inter-Sectoral Linkages and Economic Growth in Saudi Arabia: Toward a Successful Long-term Development Strategy", International Journal of Science and Research (IJSR), Volume 3 Issue 8, August 2014, pp. 1654-1659, https://www.ijsr.net/get_abstract.php?paper_id=2015789

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