The Impact of Trade Openness on Economic Growth in the light of Saudi’s Vision 2030

Abstract

This study aimed to analyze and estimate the impact of trade openness on economic growth in the light of Saudi Arabia's Vision 2030 during the period (1988-2022), as trade openness is one of the means that contribute to driving and strengthening the activity and economic growth through the ability to compete and diversify in the trade of goods and services. This study focused on Saudi Arabia, considered an essential country in the region due to its expansion into different economic sectors and its substantial oil reserves, which help attract capital in all its forms. The study also highlights the Kingdom of Saudi Arabia's Vision 2030's influential role in activating trade openness policies on economic growth. It applied the autoregressive distributed lag period (ARDL) method and concluded that there is a long-term cointegration relationship between the study's variables. The results show a positive impact of Vision 2030 on Saudi economic growth; in addition to that, improving governance indicators play an essential role in Saudi economic growth.