Modeling the exports diversification in the oil countries growth: The case of gulf cooperation council countries

This paper aims at modeling and analyzing the short and long run effects of export diversification on economic growth using the countries Gulf Cooperation Council (GCC) panel data for the period 1992-2017. The paper introduces the panel auto regressive distributed lag/pooled mean group (ARDL/PMG) to reach its purpose. The export diversification measured by Theil index. The Pedroni panel cointegration test confirms that the variables are cointegrated, whereas PMG estimates indicate a positive significant long run relationship between export diversification and real gross domestic product (GDP) growth, no significant effect of export diversification in the short run.