The Impact of Foreign Trade on the Growth and Development of The Economy in Saudi Arabia

Suad A Ebin Elgesim


The main aim of the present study is to analyzethe impact of foreign trade on the economic development in Saudi Arabia during the period (1990-2014). In order to achieve the above objective the descriptive analysis has been used. The VAR model (Vector Auto-Regressive model) has been fitted to the data so as to determine the relationship among all economic variables.
The main results of the study are: there is a direct relationship between GDP (Gross Domestic Product) and trade balance, and there is positive relationship of exports of oil and GDP.
Accordingly, the study recommends that the Saudi government should encourage exports.


Gross Domestic Product, Foreign Trade, Saudi Trade Balance.


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