Estimating a Multiple Regression Model for GCC countries- The impact Research Paper

Estimating a Multiple Regression Model for GCC countries- The impact of Exports and FDI (Foreign Direct investment) on GDP in Saudi Arabia (1990- 2013) - Research Paper Example In addition, government expenditure also contributes to the management of the GDP of an economy. Following the topic selected that relates the exports and foreign direct investment aspects of Saudi Arabia, one learns that foreign aspect play a role in shaping the different economies. Considering the Saudi Arabian economy, much of its activities have survived on the aspects of export especially of petroleum products and foreign trade that have seen the economy grow its GDP to reasonable grounds making its economy grow to the advantage of the people (Taylor & Francis Group, 2003). The economy being sustained by exports and foreign income that is raised through the foreign direct investments proves stable in the sense that it can sustain the pressure that the foreign currency exerts on its local currency. Through these, the economy survives various economic challenges as a result of having many economic activities to rely on in streaming in revenue. In trying to understand economic development of any country, these aspects of economic essence need considering that will guide the economy to growth. The details of the paper below discuss the different effects that the export aspects and FDI as two independent variables have on the GDP of an economy. The economy much relies on the two variables as per the subject as a dependent variable. This study devises a regression model that will indicate the relationship between the three variables and any variance aspects, standard errors and other statistical explanations of the results. The data collected indicates the relationship between the three variables that is exports, FDI and GDP of the Saudi Arabian economy. These provide a relationship that describes the different effects that changes to one variable will have to the economy. Understanding the different variables helps one understand the positive or negative nature of their influence to the GDP and the general economy of Saudi