The main aim of the study is twofold: first, to explore the relationship between economic diversification (ED) and real economic growth. Secondly, to examine that relationship in connection with the flow of Foreign Direct Investment (FDI). The study utilizes the raw data of the Economic Diversification Index (EDI) over the last couple of decades for the main four Arab Oil Abundant countries (KSA, UAE, Qatar, and Bahrain). The research employs four separate ARDL models. The main findings for economic diversification impact on economic growth were significantly positive in the long run for (UAE, Bahrain, and KSA), and negatively associated in the short run for the four countries. However, regarding the FDI and ED association, the results reveal a positive impact except for Bahrain and a negative association in the short run for KSA and Bahrain.

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Economic Diversification, Economic Growth & FDI: Analysis in Some GCC Countries

  • Khalid W. Wazani,
  • Abeer M. Rashdan

摘要

The main aim of the study is twofold: first, to explore the relationship between economic diversification (ED) and real economic growth. Secondly, to examine that relationship in connection with the flow of Foreign Direct Investment (FDI). The study utilizes the raw data of the Economic Diversification Index (EDI) over the last couple of decades for the main four Arab Oil Abundant countries (KSA, UAE, Qatar, and Bahrain). The research employs four separate ARDL models. The main findings for economic diversification impact on economic growth were significantly positive in the long run for (UAE, Bahrain, and KSA), and negatively associated in the short run for the four countries. However, regarding the FDI and ED association, the results reveal a positive impact except for Bahrain and a negative association in the short run for KSA and Bahrain.