Stat - Statistics Project Example

it the economic performance of the country. The contribution of different industry sectors of the country when combined together then creates the cumulative production level or the productivity of the economy. The gross productivity of all the sectors of the country by the residents of the country is referred to as the gross domestic product. The gross domestic product is represented in terms of absolute values or numbers, which may create difficulty in evaluating the performance of the country.

Therefore, other mathematical as well as statistical methods can be used for the purpose of analysis. The most common indicator of the performance of the country is the GDP growth rate per year. The growth rate can be calculated using the periodic change in the production level of the economy in terms of percentage change. The purpose of the paper is to evaluate the performance of the economy of Saudi Arabia in terms of its GDP growth rate along with the impacts of exports and Foreign Direct Investments (FDI) on GDP growth rates.

The GDP of Saudi Arabia is assumed to be one of the most important economies for the Muslim World, as well as, for the western world because it is oil based economy. The influence of the Govt is significant with respect to controlling major economic activities. Saudi Arabia contributes around 18 to 20% of the world petroleum reserves. It is assumed to be one of the largest exporters of petroleum. Therefore, the study of the economy, as well as, the interests of the investors towards such a profitable economy seems interesting.

Moreover, another reason for the selection of the topic is the study of relationship of foreign direct investment, exports and GDP together. Therefore, the whole study is based on the literature review on the economy of Saudi Arabia and the statistical analysis using the regression model to evaluate the impacts of Foreign Direct Investment and Exports on GDP. There are different