Macroeconomic factors influencing the Saudi balance of payments’ current account dynamics from 1995 to 2019

• DOI: 10.21511/pmf.13(1).2024.09
• Publication Date: 2024-06-18T12:54:25Z
• Authors: Saidi Ouassaf; Ismail Bengana; Abdelkader Laallam; Nourredine Khababa; Kamel Si Mohammed
• Keywords: Balance of Payments

Reliable development reports highlight persistent deficits in developing countries’ balance of payments since the 1980s and 1990s, attributed to monetary turmoil ambitious plans. Saudi Arabia faces similar challenges as leading economy Middle East North Africa region.The objective this study is pinpoint macroeconomic determinants influencing Arabia’s current account from 1995 2019. This aligns with objectives Vision 2030, which emphasizes economic diversification sustainability.Eleven were subjected Principal Component Analysis model Autoregressive Distributed Lag for analysis. Five determinants, such budget balance, goods exports, per capita gross domestic product, product growth, liquidity identified significant contributors balance. The revealed that exert a statistically positive impact on long term.The research findings significance shaping emphasizing need away oil dependence mitigate vulnerabilities. underscores implications stressing strategic policy interventions foster non-oil exports stimulate growth. Additionally, analysis identifies temporal variations export dynamics, importance continuity adaptability resilience. AcknowledgmentsThe authors gratefully acknowledge financial support Deanship Scientific Research, King Faisal University (KFU) Arabia. present work was done under Project Number (CHAIR 138).