CO-VARIABILITY OF EXPORTS, IMPORTS AND GDP-A RELATIONAL MOVEMENT ANALYSIS
Abstract
Purpose-The aim of the study is to find out the mutual co-movement of exports, imports, components of exports and imports, and the GDP of Saudi Arabia. Research Methodology- Exports, imports, and components of exports and imports extracted from the SAMA website for the period 2002 to 2021. Mean, standard deviation, and coefficient of variation are applied to get the data variability. Index numbers, ANOVA, and post hoc analysis were applied to get the growth trend, and significant difference among the groups of variables, and identify the significantly different groups, respectively. Findings- The analysis of the study revealed that there is a co-movement relationship between the exports, imports, and GDP of Saudi Arabia in long run. In exports components, non-mineral products growth rate is significantly different while articles of base metals, machinery and mechanical appliances electrical equipment & parts thereof growth rate is different from the other components of imports. Research Limitations- The study considers only the quantitative data for the period 2002 to 2021. Population growth, technological advancements, and other abnormal and external factors should be considered to measure the movements of the variables. Practical Implications- Based on the findings, the exports of non-mineral products can be enhanced and imports of base metals and, articles of base metals, machinery mechanical appliances electrical equipment & parts thereof can be reduced to accelerate the growth of the Saudi economy. The results of the study are expected to be advantageous for researchers, policymakers, and academicians. Originality/value- For a long time, researchers involved to get insights into the components and sub-components of foreign trade and their trend of movement to get the governing key factors. However, the international trade status of every nation is different from others. The present study tries to explore the exports, imports, components of exports and imports, and their significant co-movement with the GDP of Saudi Arabia.
Keyword : Exports, Imports, GDP, Saudi Arabia, Post hoc analysis.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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