Assessing the Impact of Globalization on Saudi Arabia: An Analysis of Economic, Political, and Social Globalization Indices

Abstract

This study offers a comprehensive analysis of Saudi Arabia's globalization experience using the KOF Globalization Index and its dimensions. The KOF Globalization Index is an index developed by the KOF Swiss Economic Institute at the University of Zurich. The acronym "KOF" stands for "Konjunkturforschungsstelle Swiss Economic Institute" in German, which translates to the "Swiss Economic Institute for Business Cycle Research" in English. This study examines economic, political, social, and cultural aspects, analyzing the country's rankings, shifts in global positioning, and intricate correlations and causal relationships. Correlation analysis reveals strong interconnections among these dimensions, with some exceeding 90%. Granger causality tests unveil temporal relationships among the various parameters of globalization. The findings highlight Saudi Arabia's evolving engagement with the globalized world and provide valuable insights into its dynamics. Based on these results, recommendations are made to inform policy decisions and strategic planning for Saudi Arabia's continued integration into the global economy and society.