Examining the relationship of inflation, gross domestic product, oil price, foreign direct investment, and trade openness on unemployment in Saudi Arabia
Bibliographic Data
The study examines the correlation between oil price, foreign direct investment (FDI), trade openness and real gross domestic product (GDP) with the unemployment rate in Saudi Arabia for the period 2016–2023. The study used EViews and excel for the data analysis; and employed Autoregressive Distributed Lag (ARDL) model for the extraction of results. The findings show that oil price FDI, trade openness, inflation and real GDP have significant negative correlation with unemployment rate, and any changes in these factors affect unemployment rate in the long term, with the coefficient −0.063, −1.630, −2.061, −3.170, and −0.353, standard error 0.097, 0.333, 0.716, 0.426, and 0.080 and t-statistics −6.507, −4.900, −2.877, −7.449, and −4.387 respectively. The results indicate that beside oil prices, there are other macroeconomic factors that also influence the unemployment rate, and show the importance of diversification of economy and reducing the reliance on oil. The findings have valuable insights for the economists and policymakers of Saudi Arabia and for other countries which mostly rely on oil exports
Economics · Foreign direct investment · Gross domestic product · International economics · Macroeconomics · Monetary economics · Oil price · Openness to experience · Unemployment · Market Dynamics and Volatility · Monetary Policy and Economic Impact · Unemployment and Economic Growth
The Economy of Saudi Arabia in the 21st Century
Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models
The Methodology of Economics
The effects of IMF conditional programs on the unemployment rate
Impact of corruption, unemployment and inflation on economic growth evidence from developing countries
The Political Economy of Unemployment
Structural Transformation Options of the Saudi Economy Under Constraint of Depressed World Oil Prices
Financial scarcity, psychological well-being and perceptions
Sustainable Silk roads future
Saudi Arabia plans for its economic future
Edmund Phelps and Modern Macroeconomics
Trade liberalization and unemployment
Phillips Curves, Expectations of Inflation and Optimal Unemployment over Time
Investment Dependence and Alternative Explanations of Third World Mortality
Short-Run and Long-Run Effects of Milton Friedman's Presidential Address
| Citation velocity | historical |
|---|---|
| Highly cited | No |