The relationship between logistics, trade openness and economic growth in the Kingdom of Saudi Arabia during the period (2000-2023)

Abstract

The research aims to verify the nature of the relationship between logistics, trade openness and economic growth in Saudi Arabia, with the aim of identifying the quantitative and causal relationships between these variables, as well as the channels through which this effect is transmitted.This is done by studying the relationship between these variables in the economic literature, and their development in the Saudi economy during the study period, and through the Johansson joint integration method, and the (VECM) model, the quantitative relationships between them are measured in the long and short-run, in addition to determining the direction of the causal relationships through Granger causality analysis based on the results of the (VECM) model.The long-run results show the existence of a joint integration relationship between the three variables in the model, and there is also a significant overlap in the relationships between them, as the relationship between logistics and economic growth, as well as between logistics and trade openness, was positive, while the relationship between economic growth and trade openness was negative.The long-term causality results show a two-way relationship between the three variables, each causing the other, and the three variables are characterized by their cumulative nature, as their values ​​in the current period are affected by their values ​​in previous periods.While the short-run causal relationships were unidirectional, namely that economic growth causes trade openness, and logistics causes both trade openness and economic growth.Therefore, attention should be paid to improving and developing logistics, as well as diversifying the production structure, as this has a positive impact on foreign trade and increases competitiveness, and thus increases the rate of economic growth.