Exploring Indicators Impacting Gross Domestic Product: A Case of the Gulf Cooperation Council Members

Abstract

This study investigates the factors that influenced the economic growth of the six Gulf Cooperation Council (GCC) members from 1990 to 2021. The study employed statistical methods such as ordinary least squares (OLS), fixed-effects model (FEM), and generalized method of moments (GMM) regressions to arrive at its findings. The World Bank and International Monetary Fund (IMF) databases provided the data for this paper. The six Gulf Cooperation Council members are the United Arab Emirates (UAE), the Kingdom of Saudi Arabia, the State of Qatar, the Sultanate of Oman, the State of Kuwait, and the Kingdom of Bahrain. In fact, the economies of Gulf Cooperation Council members (countries) are highly dependent on the oil sector. Therefore, one of the main positive indicators of gross domestic product in the Gulf Cooperation Council countries is oil prices. In addition, inflation plays a significant and positive role in supporting the gross domestic product in the Gulf Cooperation Council area. In contrast, unemployment rates and the COVID-19 pandemic impacted the gross domestic product in the Gulf Cooperation Council region significantly and negatively. The implications of this study help policymakers make the right decisions and implement policies to increase economic growth in Gulf Cooperation Council countries. Furthermore, this study supports economists and academics in conducting their research in the same field.