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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2020-02-10  |  Accepted: 2020-05-25  |  Published: 2020-06-30

Title

Concentration of oil sector or diversification in Saudi economy: consequences on growth sustainability


Abstract

Oil sector contributes most of macroeconomic performance in Saudi Arabia. Using a period 1970-2018, we calculate the production, exports, government revenues, investment and employment concentration indices using normalized Herfindahl Hirschman index and test the effects of concentration indices on the economic growth. We find that exports and government revenues are highly concentrated and majorly depend on the oil sector. Employment is more concentrated by public sector and production is majorly concentrated on oil sector. Investment is shown relatively lesser dependence on the oil sector with compare to exports, production and government revenues. In the long run, we find the positive effects of production and government revenue concentrations on the economic growth and negative effects of exports and employment concentrations. Moreover, we find the Granger causality from production concentration to the economic growth, from government revenue and exports concentrations to the production concentration, from investment concentration to the export concentration and from production, investment and government revenue concentrations to the employment concentration.


Keywords

oil sector, concentration and diversification, economic growth, government revenues, investment, exports


JEL classifications

O13 , O11 , L25 , F14


URI

http://jssidoi.org/jesi/article/591


DOI


Pages

3369-3384


Funding

The authors extend their appreciation to the Deputyship for Research & Innovation, Ministry of Education in Saudi Arabia for funding this research work through the project number (DRI-KSU-SS-341).

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Alkhathlan, Khalid Abdullah
King Saud University, Riyadh, Saudi Arabia http://ksu.edu.sa
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Alkhateeb, Tarek Tawfik Yousef
Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia https://psau.edu.sa
Kafrelsheikh University, Kafr El-Shaikh, Egypt http://kfs.edu.eg
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Mahmood, Haider
Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia https://psau.edu.sa
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Bindabel, Wardah Abdulrahman
Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia https://psau.edu.sa
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

4


Issue date

June 2020


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 2950  |  PDF downloads: 1491

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