The Effect of Savings and Female Labor Force Participation on GDP in KSA and Kuwait during the period 1999-2019

This paper studies the effect of savings and female labor force participation on Gross domestic product (GDP) in Saudi Arabia and Kuwait. These countries were selected for study since they are experiencing tremendous change in female labor force participation in their total work force and increase in savings rate, affecting GDP growth, during the period 1999-2019. It was observed that very few studies have examined these factors. The study uses data from world development indicators. The method used to analyze and examine the data is an E-views program and simple regression analysis. It was seen that savings had a positive impact on GDP in both the countries. Female labor force participation has a negative impact in Kuwait and positive in Saudi Arabia. Kuwait has less and negative savings as compared to Saudi Arabia. Also, Kuwait has greater number of females in the male-female ratio. Thus, the study emphasizes increase in savings created positive impact on GDP in both countries but in Kuwait due to a greater number of females in the total population, savings has less positive impact on GDP compared to Saudi Arabia.