Analysis of the Impact of Green Trade on Sustainable Growth in Saudi Arabia

Abstract

Green economic growth is about getting more economy from our natural asset endowment. And here the environment’ economy – for the growth of economy it is beneficial, because does, as it were, stimulate protection/s conservation of the environment and welfare of society from the use these resources, namely the consumption of all resources renewable and nori renewabhi, though sparingly with measure. It also calls for maintenance of the natural wealth needed for the continuing green revolution. green growth concentrates on finding ways to achieving environmental sustainability. If, however, the economy can be developed funding ‘freely’ without restrictions systematically, it leads to devastation/wealth sustainable economy. The Saudi Vision 2030 highlights the importance of green economic growth by actively fostering natural resources through their protective sustainable usage, disaster and climatic change resilience and mitigation actions. Here, we fill the gaps of natural resources toward green economic growth with emphasis on green trade with Saudi Arabia from 1995 to 2023. This study employs Autoregressive Distributed Lag (ARDL) cointegration approach augmented with Dynamic Autoregressive Distributed Lag (DYNARDL) model. Per the findings from both models, it is evident that green trade, in the long run, has a positive impact on green economic growth. In the short-run, there are signs of a positive impact only from the DYNARDL approach. These outcomes suggest that the appropriate direction should be set toward the increase of green trade to strengthen economic growth and favorable resource utilization in Saudi Arabia.