Asymmetric Impact of Economic, And Structural Factors on the Development of the Non-Oil Export Sector in GCC Economies 1992-2022: Structural Reform Priorities to Sustainable Economic Growth
1Hassan Tawakol Ahmed Fadol, 2Duaa Alquayt
1Associate Professor of Econometrics and Applied Statistics, Sudan University of Science and Technology.
ORCID: 0000-0003-4456-9082, 00249912457382
2PhD candidate, Imam Muhammad bin Saud University
https://doi.org/10.47191/jefms/v7-i7-32
ABSTRACT:
The current study empirically investigates to explore the links between economic and structural variables of non-oil export industry development in GCC economies. The research spans the years 1992 to 2022. It is understandable to wonder why some oil-producing countries have been able to diversify and build their economy while others have not. We postulate that disparities in the diversification and development patterns of oil producers are related to differences in their economic and structural characteristics. Divergence in diversification and development trends may result from such discrepancies. We measure the role of economic and structural elements to test this idea. The findings indicate that economic and structural factors play a critical role in the process of diversification and development. Countries have the higher-quality infrastructure, in particular. The findings imply that GCC authorities should improve robust macroeconomic conditions to support their non-oil export sector and boost institutional quality drivers to accelerate non-oil export sector development in their nations. The empirical findings can assist GCC policymakers in better designing the economic policies required to accomplish the GCC countries' comprehensive and sustainable economic development. Asymmetric mechanisms in non-oil export responses to economic and structural factor changes are likely to differ across economic sectors in GCC countries. A sectoral examination of this link could provide further information and supplement our analysis. New capital and infrastructure must be accommodated to support domestic and export manufacturing.
KEYWORDS:
Panel Econometric Models, Non-oil Exports Sector, GCC Economies, Economic diversification, Economic Indicators, Structural Indicators
JEL Classification Code:
C54, B22, E52, E61, F41:
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