Nexus between Governance and Economic Growth: Learning from Saudi Arabia

Mamdouh Abdulaziz Sa Al-Faryan and Nikhil Shil

Cogent Business & Management, 2022, vol. 9, issue 1, 2130157

Abstract: This study aims to examine the impact of good governance on economic growth in the context of Saudi Arabia. Based on secondary sources, this study applies quantitative research methods to highlight any relationship between the predictors and outcome variables. An econometric model has been developed to this effect which is tested using 36 years of data. GDP per capita represents economic growth while oil price, general index, trade openness, government spending, corruption perceptions index, and worldwide governance indicators were used as governance parameters in this study. The Saudi Arabian economy has gone through various reform initiatives resulting redefining and refitting economic activities in areas like the ownership structure of companies, the overreliance on petroleum sector, measures addressed in Vision 2030. None of the studies perfectly captures the broader governance framework and its impact on economic performance from macro perspective. Considering this as a research gap, this study identifies various governance constructs within the country context and deploys a thorough analysis to understand the macroeconomic status and to highlight some policy issues for different stakeholder groups. The study confirms a positive relationship of general index, trade openness and oil price with economic growth. By bringing moderating (general index on the relationship between GDP per capita and oil price) and mediating (oil price on the relationship between GDP per capita and government expenditure) effect, this study brings additional insights on the macroeconomic dynamism of the country which has undergone major economic reforms.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2022.2130157 (text/html)
Access to full text is restricted to subscribers.

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:taf:oabmxx:v:9:y:2022:i:1:p:2130157

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2022.2130157

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().