An assessment of the economic impact of natural resource rents in kingdom of Saudi Arabia

Ruba A. Aljarallah

Resources Policy, 2021, vol. 72, issue C

Abstract: In recent decades, the dilemma of natural resource endowments has gained immense importance. It has been argued that natural resources are either a blessing or a curse for any resource rich country. Given the critical role these natural resources play in the economy, the present study estimates the long run and short run impacts of natural resource rents on GDP per capita and Total Factor Productivity in the Kingdom of Saudi Arabia. For this purpose, the cointegration and error correction approach based on the autoregressive distributed lags model is used. The results indicate that natural resource rents increase per capita GDP and Total Factor Productivity significantly in the long run, highlighting that natural resources are considered as a blessing for the Kingdom of Saudi Arabia in the long run. Moreover, enhancement in human capital increases per capita GDP and total factor productivity significantly in the long run. Based on these results, the study suggests that investing in human capital is an urgent move to reach sustainability in the long run, and to decrease reliance on natural resource rents to circumvent the occurrences of the resource curse in the future.

Keywords: Resource rents; Resource curse; Institutional quality; Human capital; Per capita GDP; TFP; ARDL; Kingdom of Saudi Arabia (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420721000866
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721000866

DOI: 10.1016/j.resourpol.2021.102070

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().