Abstract
The paper investigates the relationship between Saudi economic growth, renewable energy consumption and trade openness during the 1980-2017 period. By using the Bootstrap Autoregressive Distributed Lag (BARDL) approach and the Granger causality analysis, the results prove the existence of a cointegration relationship between the considered variables. In order to test for Granger causality in the presence of cointegration among the variables, the results indicate that there is a short-run unidirectional causality running from GDP to trade openness. Thus, a bidirectional causality is detected both between (REC-TOP) and between (PIB-REC). In contrast, in the long run, there is a one-way causal relationship running from renewable energy consumption, trade openness to economic growth. These new findings will help policymakers and government officials better understand the role of renewable energy and economic growth in Saudi Arabia's development.
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