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This is a ARDL study (also classified as: NARDL).

September 10, 2025EconomiesOpen Access

The Relationship Between Trade Openness and the Inflation Rate in Saudi Arabia: A Cointegration Approach

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Analysis reveals trade openness increases inflation in Saudi Arabia, suggesting economic performance's influence.

Trade openness positively influences the inflation rate in Saudi Arabia, contradicting Romer’s hypothesis.
Findings from ARDL and NARDL methods confirm the significant relationship between trade openness and inflation.
The analysis of data from 1975 to 2023 provides insights into the economic dynamics affecting inflation in KSA.
The results indicate that domestic industrialization and government expenditure negatively impact inflation rates.

Altwijry et al. (2025) studied this question.

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