Asset Details
Do you wish to reserve the book?
The Role of the Petrochemical Sector's Exports in the Diversification of the Saudi Economy. A Scenario Analysis of the Foreign and Domestic Price Shocks
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
The Role of the Petrochemical Sector's Exports in the Diversification of the Saudi Economy. A Scenario Analysis of the Foreign and Domestic Price Shocks
Do you wish to request the book?
The Role of the Petrochemical Sector's Exports in the Diversification of the Saudi Economy. A Scenario Analysis of the Foreign and Domestic Price Shocks
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
The Role of the Petrochemical Sector's Exports in the Diversification of the Saudi Economy. A Scenario Analysis of the Foreign and Domestic Price Shocks
2024
Overview
Saudi Arabia's petrochemical sector accounts for a significant portion of non-oil exports and has the potential to contribute significantly to the Kingdom's diversification. In this study, Autometrics—a machine learning method, was first employed to estimate export equations of chemicals and rubber-plastics for 1993-2020. The estimated equations were then integrated into a macroeconometric model called KAPSARC Global Energy Macroeconometric Model (KGEMM) and a scenario analysis was performed for the diversification effects of foreign and domestic price shocks till 2035.
The scenario analysis showed that a 10% increase in foreign prices leads to 0.40 percentage point and 0.13 percentage point more diversified exports and economy on average for 2023-2035. Regarding domestic prices, a 19% increase in industrial fossil fuel prices and a 10% increase in ethane price result in less than a 0.1 percentage point contraction in the diversification of exports and economy if the revenues from the price reforms are not recycled back to the economy. The reforms can boost economic diversification by 0.05 percentage point if the revenues are recycled back to the petrochemical sector as an investment. If domestic price reforms are coupled with the investment in the petrochemical sector and 50% of this investment goods are locally produced, then diversification of Saudi export and economy enlarge considerably—by 0.20 percentage point and 0.26 percentage point, respectively.
