Relationship between Education and Economic Growth: A Case Study of the Kingdom of Saudi Arabia

This study aims at identifying the impact of education on economic growth in the economy of oil-rich Saudi Arabia. In this study, we distinguish between the effect of education on economic growth in the oil and non-oil sector in Saudi Arabia during the period 1985-2016 using the ARDL methodology to estimate the long-term equilibrium parameters along with the error correction model To estimate the short-term dynamic of the parameters simultaneously. We found that secondary education is not statistically significant in the growth of GDP per capita and non-oil in the long run, while it has a statistical significance and a positive relationship to the growth of per capita GDP of the oil sector in the long term, and that higher education is significant statistical and adverse relationship On the growth of per capita GDP and oil in the long term while it was of statistical significance and a direct relationship with the growth of non-oil GDP per capita in the long term his result shows that higher education has a positive impact on the growth of GDP per capita of non-oil and this is the Kingdom seeks in its future plans to reduce the dependence on oil and as a result of the need to increase interest in higher education and expansion, which calls for continued support and government supervision on Higher education and its financing and quantitative expansion to accommodate the increase in demand for higher education and improve education and curricula to raise the level of the educational process in a way that achieves the development goals of a more educated and more able to contribute to growth. The expenditure on education has been shown to be of statistical significance and an inverse relationship to the long-term growth of per capita GDP and non-oil, which is statistically significant and positively proportional to the long-term GDP growth of the GDP. This leads us to focus on spending on education And directing it to what develops the educational process.