Testing the causality between exports, oil rent and gross domestic product in Kuwait : an empirical study for the period 1980-2017

Abstract EN

The study of the relationship between oil prices, exports, and economic growth has captured the interest of economists for decades, especially for oil-exporting countries.

This study intends to determine the relationship and the direction of causation among oil rent, exports, and economic growth in the short-run and long-run, and the causation effects among the variables.

Time series data collected from both the world bank and International Monetary Fund databases for the period 1980 to 2017.

The series tested for stationarity, cointegration, and causation using the unit root, cointegration, and pairwise granger causality tests.

The results revealed that there was a long-run association among the variables.

On the other hand, causation only exists between export and economic growth in both directions.

Eviews10 statistical software used for the analysis.