Imports, Exports and Growth of Gross Domestic Product (GDP)-A Relational Variability Analysis

Nowadays, foreign trade plays an important role in the development of the economy and involves the imports, exports, and re-exports of products. The composition of foreign trade, i.e., imports, exports, and re-exports, varies from nation to nation according to their needs and requirements for products, ultimately affecting the economy. This research aims to determine the effects of international trade on the economy of Saudi Arabia, as well as the reciprocal movement of exports, imports, and components of exports and imports. Foreign trade data is taken from the website of SAMA for the period 2002 to 2021. To determine data variability, mean, standard deviation, and coefficient of variation are utilized. To determine the growth trend, the statistically significant difference between the groups of variables, and the substantially different groups, respectively, index numbers, ANOVA, and post Hoc analysis were used. The study's findings indicate that there is a co-movement relation between Saudi Arabia's exports, imports, and GDP over time. The growth rate of non-mineral items in export components differs significantly from that of articles made of basic metals, machinery, mechanical appliances, electrical equipment, and parts thereof in import components. Based on the results, it is possible to increase non-mineral product exports while decreasing imports of machinery, electrical equipment, appliances, and components thereof. This would help the Saudi economy expand more quickly. The study's findings should benefit academics, researchers, and decision-makers in government policy.