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Abstract of the project

This study investigates the influence of trade openness on Saudi Arabia's sustainable development. It does this by leveraging the autoregressive distributed lag cointegration architecture with yearly data from 1971 to 2016. Overall, the data indicate a long-term association between trade openness and two metrics of sustainable development: economic growth and environmental quality. The findings show that trade openness has no short-term impact on both metrics of economic development and environmental quality. However, trade openness has a large negative influence on economic growth when measured by the variables exports plus imports to GDP and exports to GDP, but a significant positive impact when measured by the variable imports to GDP.

ntroduction Sustainabl development entails meeting current needs while ensuring future generations can meet their owIt is supported by three pillars: economic, environmental, and social. Policies in these three areas must collaborate and support one another in order to achieve sustainable development.

To achieve successful sustainable development, the three major goals must be pursued concurrently, engaging with one another in a persistent and devoted effort. When these techniques are applied to development, cities must embrace low-carbon growth and public transit, climate-smart agriculture, natural resource preservation, and better efficiency in energy and the global supply chain. Sustainable development techniques assist nations in growing in ways that adapt to the difficulties posed by climate change, so helping to safeguard vital natural resources for current and future generations. It is anticipated that our global population will reach 9 billion people by 2050. The challenge of sustainable development is to progress in such a manner that each and every one of these individuals will be able to participate. International institutions, particularly the World Bank and the World Commerce Organization (WTO), believe that there is a significant link between international trade and sustainable development. These groups have highlighted several initiatives on trade and sustainable development, with the goal of proposing appropriate trade methods that can lead to increased economic growth while also protecting the environment for future generations (e.g., [13]). According to the United Nations Conference on Commerce and Growth [4,] international trade might be a potential driver of economic development. Economic development objectives have grown in importance, with many governments throughout the world, including Saudi Arabia, pursuing them. One of the most fundamental problems in economic literature, the link between trade openness and sustainable development, has received fresh attention in recent years. More than eight years after the majority of Arab nations' political and social revolutions in 2011, their economic conditions are constantly fluctuating between problems and potential to be appreciated. Even if the current economic and financial conditions in many Middle East and North Africa (MENA) nations are vulnerable, they provide good signs that allow them to continue on the path of progress. International commerce has been viewed as a source of income since the mercantilists. It has significant implications for countries as a driver of technological spillovers. International trade may contribute to increased innovation, capital formation, increased productivity, and more efficient resource allocation in importing nations. Saudi Arabia's economy is dominated by petroleum and related industries; the country has the world's largest oil reserves, accounting for roughly one-fifth of all known reserves. Saudi Arabia's international trade status has been positive, with total exports of 185,699,411.84 million US dollars and total imports of 131,313,235.63 million US dollars, for a trade balance of 54,386,176.20 million US dollars. Saudi Arabia has an Effectively Applied Tariff Weighted Average (customs duty) of 4.23%, while the Most Favored Nation (MFN) Weighted Average tariff is 5.19%. Trade growth is -17.58%, compared to -3.91% for the global economy. In current dollars, Saudi Arabia's GDP is 700,117,873,249.27. Saudi Arabia's services export in BoP, current US dollars is 10,247,845,251.11, and its services import in BoP, current US dollars is 53,883,086,612.45. Saudi Arabia exports goods and services at 26.34% of GDP and imports goods and services at 24.26% of GDP. the sudden rise in international tread Trade in goods and services on a global scale is critical for poverty alleviation and long-term development. By fostering economic growth through trade growth, international trade contributes to poverty reduction, food security, job creation, gender equality, and environmental sustainability. So The aim of this study is to investigate international trade and sustainable development in Saudi Arabia. Putting all together, this study will discuss how the international trade impacts the economic development in Saudi Arabia.

Literature Review

International trade has substantial effect on economic development and environmental safety (Belloumi and Alshehry, 2020). Frankel and Romer (1999) studied the economy in 63 countries and concluded that international trade has favorable influence on income. Furthermore, Rahman (2007) analyzed the case for Bangladesh and India. Their results showed that international exports positively impacts the GDP and economic results. Numerous analyses were made over the years to asses the relationship between global commerce and the factors of sustainable development . Many fascinating prior research have studied the relationship between international commerce and economic growth(Belloumi & Alshehry, 2020). In this paper, we look at some earlier research that look at the global scale; then studies that look at several rising nations, including the Kingdom of Saudi Arabia; and finally studies that focus especially at MENA and Gulf Cooperation Council (GCC) countries. Alhowaish [32] concludes that in the instance of Saudi Arabia, exports have a positive influence on economic production in both the short and long run, whilst imports have no effect on economic growth. Rehman et al. [34] discover a unidirectional causation going from trade openness to economic development in Saudi Arabia using the same approach and variables as (et al., 2020). Similarly, (Kumar & et al., 2004) investigate the trade openness-economic development relationship in South Africa. Few studies have looked into the effect of foreign commerce on economic growth in MENA nations, notably those in the Gulf Cooperation Council. (Alalaya, 2014) finds a unidirectional causation flowing from international trade to economic growth when evaluating the link between economic growth and international commerce in Jordan from 1990 to 2008. (Chevallier, 2017) investigates seven MENA nations (Algeria, Egypt, Jordan, Morocco, Syria, Tunisia, and Turkey) from 1982 to 2009. His findings demonstrate that exports had a beneficial impact on economic growth in the nations he analyzed. Using the Pooled Mean Group estimate approach, (ZID & JOUINI, 2010) investigates the dynamic link between trade openness and economic development in the six GCC nations. Overall, the results are mixed. Trade openness has yet to be proven to have a major beneficial influence on economic growth, according to researchers. This might be due to a variety of factors, including different time periods, different proxies for trade openness, different methodology used in earlier research, and so on. The majority of cross-sectional research have discovered a favorable association between trade openness and economic development (Patents, 1881) Various studies have indicated that trade openness has a favorable influence on the environment (Der Einstufungskrimi, 2019), but others have found that trade is harmful to the ecosystem (e.g., [5052]). (FRANKEL, 1962) use trade to reduce SO2 and NO2 emissions as examples of the positive consequences of international trade. In the same vein, (Dean et al., 2009) discover that trade liberalization reduces air and water pollution in China. More recently, Le et al. [49] discover that more openness to foreign commerce may reduce CO2 emissions in China, resulting in improved environmental quality. The ARDL cointegration technique is used to analyze yearly data for Saudi Arabia from 1971 to 2016. This method is implemented in three phases. To begin, we use common unit root tests to evaluate the stationarity of the variables under consideration, such as the augmented (Rashid, 2020), the (Moon et al., 2006), and the DF-GLS test devised by Elliott, Rothenberg, and (Hansen, 1961) . Second, once all of the variables have been integrated to order zero or one, we use the limits test of Pesaran et al. [64] to examine the cointegration connections. Third, we estimate the short- and long-term coefficients from the error correction models in the presence of cointegrating association.

Summary and Conclusion

Sustainable development is defined as the global commission on environment and development emphasizing the importance of meeting current and intergenerational needs (Griese, Mueller, Reichl, and Stobbe 2001). It brings together environmental, economic, and social concerns. The success of the sustainable development concept is dependent on the stakeholders. This is dependent on their ability to initiate a dialogue between business, civil society, and governments, as well as the creation of a joint partnership file for global and local progress. Furthermore, its future is dependent on its ability to integrate developing and transition countries into the process (Griese, Mueller, Reichl Stobbe 2001).

In this paper, economic development and environmental safety in Saudi Arabia are considered, as well as how they affect income. Saudi Arabia must also maintain its openness to international investment flows in order to promote and support the development of its financial markets, which could lead to long-term growth. Specific policies aimed at increasing investment in technology and innovation, increasing productivity, improving and enhancing the quality of the enterprise, and its ability to adapt and acquire new skills must be accompanied by opening a business. As a result, trade must be liberalized in order to promote sustainable development. Trade openness is critical to long-term growth. Environmental technologies help in the efficient allocation of scarce resources and facilitating access to them.

Doing Business in Saudi Arabia is part of an ongoing series of international business papers whose format has evolved over time and applied to a variety of country topics. This paper, Doing Business in Saudi Arabia, examines a traditional society on the verge of change, as its oil-dependent economy suffers and the country searches for new financial and social means to define its role in the twenty-first century. Achieving sustainable development goals means promoting economic growth in the Kingdom of Saudi Arabia. Economic growth is a desirable component of any country's economy, and it is responsible for rising energy consumption, which contributes to emissions that harm the environment in which we live. Adequate electricity availability is required to meet the high demands of domestic and industrial use. It works to raise the standard of living by involving more citizens in jobs in order to ensure future population growth and environmental safety. Despite the kingdom's increase in electricity tariffs in an effort to benchmark domestic energy prices with international standards, the country needed to diversify its energy mix and invest more in renewable energy sources to meet industrial and domestic energy demands. More talented and productive youths should be involved in increasing the output of all economic contributing sectors in order to increase and stimulate government revenues and productivity. The study also focuses on the World Trade Organization's objectives to promote economic growth at the individual country and global levels. The WTO's goals are inextricably linked to international trade policy and its outcomes. The WTO's functions are reflected in the agreements that all member countries must follow. These agreements cover a wide range of trade-related topics, including goods and services, intellectual property, trade dispute resolution, and policy review. As a member of the World Trade Organization, Saudi Arabia has met many requirements, and it is worth investigating the effects of these requirements on the country's economic activity. As for data analysis, the ARDL cointegration method was used, relying on three steps to estimate short and long-term coefficients and error correction in case of a co-correlation: Dickey-Fuller (ADF) test, DF-GLS test created by Elliott, Rothenberg, and Stock "63". The variable CO2 emissions per person are used to assess environmental quality.