The Knowledge-Based Economic Drivers in Arabic Gulf Countries

Abstract

Over the past ten years, Arab Gulf countries have made it an explicit aim to transform their economies into a knowledge-based economy. Now the knowledge economies have expanded and become more essential for Arab Gulf states. It had become a strategic vision and plans for economic diversification. This paper aims to analyse the impact of knowledge-based economy on economic development in Arabic Gulf countries over the 1980-2015 period. This study employed a wide variety of dimensional index approach to a knowledge-based economy. The data allowed us to evaluate the impact of knowledge on economic growth extensively. Panel time series method was employed to analyse the role of knowledge-based economy on economic development, using the long-run FLOMS, DOLS and PMG regression analysis. This study found that three knowledge-based economy criteria, education, information and communication technology (ICT) and innovation, significantly influence Arabic Gulf countries' economic growth. The findings are useful for the regulators in the Gulf countries as input for their effort to create an economic environment conducive to enhancing the level of knowledge and, hence, economic growth.