Manufactured goods' export diversification in Saudi Arabia: a spatial panel approach

This paper explores the potential spatial diversification of manufactured goods' exports in Saudi Arabia. To account for the spatial interactions of Saudi's manufactured goods' exports, we use a panel Spatial Autoregressive (SAR) model for 77 trade partners over the period 2000-2016....

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Bibliographic Details
Published inCogent economics & finance Vol. 8; no. 1; pp. 1 - 16
Main Authors Gouider, Abdessalem, Ben Haddad, Hedi
Format Journal Article
LanguageEnglish
Published Abingdon Taylor & Francis 2020
Cogent
Taylor & Francis Ltd
Taylor & Francis Group
Subjects
Diversification
Exports
Foreign exchange rates
GDP
Gross Domestic Product
Interdependence
manufactured goods' exports
panel Spatial autoregressive model
Policy making
Saudi Arabia
spillover effects
Saudi Arabia
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Summary:This paper explores the potential spatial diversification of manufactured goods' exports in Saudi Arabia. To account for the spatial interactions of Saudi's manufactured goods' exports, we use a panel Spatial Autoregressive (SAR) model for 77 trade partners over the period 2000-2016. The empirical results suggest, firstly, the existence of spatial interdependence among Saudi's manufactured goods' exports. Secondly, we find that the exogenous variables including GDP, GDP per capita, trade freedom, bilateral exchange rate, and trade intensity index exert strong spillover effects on bilateral Saudi's manufactured goods' exports. Finally, the study demonstrates evidence of the highest potential with 34 out of 77 partners. This finding has important implications for policymakers, mainly in terms of development of the domestic manufacturing sector and geographic reallocation of Saudi's manufactured goods' exports.
ISSN:2332-2039
2332-2039
DOI:10.1080/23322039.2020.1741309