Economics at your fingertips  

Oil Price and Employment Nexus in Saudi Arabia

Tarek Tawfik Yousef Alkhateeb, Haider Mahmood (), Zafar Ahmad Sultan and Nawaz Ahmad
Additional contact information
Tarek Tawfik Yousef Alkhateeb: Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia
Zafar Ahmad Sultan: Bihar University, Muzaffarpur; Bihar, India,

International Journal of Energy Economics and Policy, 2017, vol. 7, issue 3, 277-281

Abstract: Higher oil price is a signal of economic growth in Saudi Arabia due to her heavy dependence on oil revenues. This study has perused the relationship between oil price and employment in Saudi Arabia by using sample period of 1980-2015 and by utilizing the linear and non-linear autoregressive distributed lag (ARDL) models. We have found a positive influence of oil price on employment level in both linear and non-linear ARDL settings. Further, employment effects of increasing and decreasing oil price are found asymmetrical in the non-linear ARDL and we have also found that increasing oil price is positively affecting employment more than declining employment due to fall in oil price. Further, economic growth supports employment significantly. This study recommends the government of Saudi Arabia to save oil revenues in time of prosperity to support employment level in the oil price crisis period.

Keywords: Oil Price; Employment; Non-linear Autoregressive Distributed Lag (search for similar items in EconPapers)
JEL-codes: C12 E24 Q41 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

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:

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

Page updated 2023-09-20
Handle: RePEc:eco:journ2:2017-03-33