Does Control of Corruption Matter in the Nexus between Trade Openness and Economic Development? The Case of Saudi Arabia

Objectives: The current research proves that Trade Openness (TO) is a significant source for a major oil world producer country such as Saudi Arabia. Therefore, the goal of this article is to investigate the impact of TO on the economic development of Saudi Arabia, focusing on how this nexus is affected by the country's control of corruption. The study employs the time series data from 2009 to 2022. Methods: This paper applies the ordinary least squares (OLS) and quantile regression Hierarchical moderated regression analysis to analyze the mechanism effect of control of corruption. The augmented Dickey-Fuller (ADF) test is used to test whether a given time series is stationary or not for our interest variables. Results: The econometric analysis indicates that TO significantly impacts Saudi Arabia's economic development, plus the country's control of corruption also influences this effect. Conclusion: Saudi policymakers and politicians must improve the country's control of corruption, making it more capable of managing its resource wealth and exporting more goods, thereby stimulating its economic development.