The non-oil institutional sectors and economic growth in Saudi Arabia

Abstract

AbstractThis study explores the role of non-oil institutional sectors in the economic growth of the Saudi economy during the years 1970–2020, using vector auto regression, impulse response function, and variance decomposition. The results of study support the impact of the oil and non-oil sectors (private and public) on the economic growth in Saudi Arabia. The results show that the growth of the oil sector is more vulnerable to shocks, negatively reflecting economic growth for long periods. However, growth in the non-oil sector is stable and reduces the negative shocks on economic growth. Both the private and public sectors contribute to economic stability. The study recommends continuing efforts to diversify the economy and enhance the cooperation and mutual linkages among different sectors, especially the public and private sectors, to contribute in the economic growth coherent with Vision 2030.

Keywords

• Oil sector
• non-oil sector
• public sector
• private sector
• vision 20230
• Aye Goodness