This study explores the relationship between GDP growth, unemployment rate, and labor force participation rate in the Gulf Cooperation Council (GCC) countries from 1990 to 2018. Furthermore, the study incorporates control factors such as government spending, trade openness, and energy use into the regression equation. We used panel dynamic ordinary least squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) estimators to investigate the relationships between variables in this investigation. The econometric technique accounts for nonstationary, endogeneity bias and cross-sectional dependencies between country-year observations. Cointegration was found among GDP growth, unemployment rate, and labor force participation. Long-term, the unemployment rate has a statistically significant negative effect on economic growth in the GCC nations. Meanwhile, the labor force participation rate significantly influences economic expansion in the long term. The expansion of government expenditures and international trade reduces economic growth. Alternatively, it is discovered that energy consumption has a substantial and positive effect on economic expansion. Okun’s rule and the unidirectional causality from economic growth to unemployment indicate that the primary cause of unemployment in GCC nations is a failure to adequately expand their economies. When developing economic strategies to reduce unemployment, policymakers are particularly interested in determining whether or not economic development and the unemployment rate are cointegrated.

COVID-19 has presented considerable challenges to fiscal budget allocations in developing countries, significantly affecting decisions regarding number of investments in the transport sector where precise resource allocation is required. Elucidating the long-term relationship between public transport investment and economic growth might enable policymaker to effectively make a decision in regard to those budget allocation. Our paper then utilizes Thailand as a case study to analyze the effects on economic growth in a developing country context. The study employs Cointegration and Vector Error Correction Model (VECM) techniques to account for long-term correlations among explanatory variables during 1991–2019. The statistical findings reveal a significantly positive correlation between transport investment and economic growth by indicating an increase of 0.937 in economic growth for every one-percent increment in transport investment (S.D. = 0.024, p < 0.05). This emphasizes the potential of expanding the transport investment to recover Thailand’s economy. Furthermore, in terms of short-term adjustments, our results indicate that transport investment can significantly mitigate the negative impact of external shocks by 0.98 percent (p < 0.05). These findings assist policymakers in better managing national budget allocations in the post-Covid-19 period, allowing them to estimate the duration of crowding-out effects induced by shocks more effectively.

This study is considered one of the few studies that attempted to explore the relationship between exports and foreign direct investment in the Kingdom of Saudi Arabia. The study aims to determine the nature of the relationship between exports and foreign direct investment in the Kingdom of Saudi Arabia during the period between (1990–2023). Employing Ender’s methodology using cointegration and error correction model. The study also relies on data on Saudi exports and foreign direct investment inflows from the World Bank databases. The results indicate the existence of Cointegration between foreign direct investment (FDI) inflows and the Saudi exports in the period (1990–2023), as for the causal relationship between the two variables, the results showed the causal relation between exports and FDI inflows from the direction of exports only, which means that Saudi exports cause FDI inflows in Saudi Arabia, and the study recommends giving more incentives to attract foreign investors in different sector rather than oil sector, besides improving the logistical services which is vital to any investment attraction strategy.

The impact of crude oil price fluctuations on the real effective exchange rate (REER) has been widely debated, but specific evidence, particularly for developing countries in Southeast Asia, is scarce and inconclusive. This issue, especially concerning both short- and long-term relationships, remains inadequately addressed, affecting these countries for risk management related to oil price fluctuations. This study aims to fill this gap by examining these relationships in Thailand context to provide more evidence on how the REER in Southeast Asia responds to changes in crude oil prices. Monthly data of crude oil prices in Dubai market and the Thai baht REER from 2000 to 2019 were employed. Johansen co-integration test and Vector Error Correction Model (VECM) were used for analyzing long-term and short-term relationships, respectively. The results indicate a significant negative long-term relationship between crude oil prices and the REER, with a 0.31% reduction in the REER for every 1% increase in the real price of oil. However, in the short term, VECM analysis reveals significant movements in the REER in response to external shocks. On average from 2000–2019, the significant fluctuations in the REER are quickly alleviated and adjusted to its long-run equilibrium, typically by 2% in the following month following external shocks such as crude oil price fluctuations. Given these findings, which highlight the long-term relationship between the REER and crude oil prices and its short-term adjustment, it is suggested that when there is a shock from the crude oil prices, the government can strengthen short-term oil price controls or monetary subsidies to mitigate the extensive repercussions of energy market fluctuations, as such interventions would have a lesser impact on the long-term equilibrium of the REER.

The contraction of manufacturing economic activity in Latin American countries has been affected by the health crisis in the last few years. This phenomenon has negatively impacted the Latin American countries’ economies. In order to evaluate the impact of the manufacturing economy, this research integrates the impact of Foreign Direct Investment (FDI) on the growth of the Ecuadorian manufacturing sector, from 1981 to 2019, considering the role of the state through public spending using cointegration. The results are not consistent considering the empirical framework used; thus, FDI has a negative and significant influence on the manufacturing sector. Also, the manufacturing sector has a strong relationship with FDI in the short run and a less significant one in the long run. The results presented in this research suggest promoting domestic and FDI in the manufacturing sector, not only towards overexploited and monopolized sectors such as mining and telecommunications.

This study examines the financial integration between Jordan and the BRIC economies (Brazil, Russia, India, and China) to determine whether long-term equilibrium relationships exist and to assess implications for portfolio diversification and policy. Drawing on daily stock index data from 01 January 2014, to 31 August 2024, the study employs econometric techniques, including Granger Causality tests, Johansen Cointegration, and Vector Autoregression (VAR). The stationarity of stock indices at the first difference level is confirmed through unit root testing. Results indicate minimal long-term cointegration between Jordan and BRIC markets, pointing to low integration and potential diversification benefits for institutional investors. However, short-term causal links—particularly between Jordan and the Russian and Indian markets—highlight these countries’ influence on Jordan’s stock fluctuations. The findings suggest that, in the absence of long-term cointegration, investors may mitigate risk by investing in less correlated markets, such as Jordan, while leveraging short-term partnerships with Russia and India. Additionally, the study provides valuable insights for business leaders considering strategic alliances with BRIC counterparts in sectors like technology, agriculture, and energy, and calls for future research into factors like regulatory frameworks and geopolitical stability that may limit long-term financial integration. These results have significant implications for institutional investors, business executives, and policymakers, suggesting targeted strategies for financial stability, risk mitigation, and economic collaboration.