Abstract:

This study aims to find the main factors of economic growth in Gulf Cooperation Council (GCC) Region during the period 2005-2017. Recently, the GCC region has faced many challenges such as oil prices drop, which represent most of gross domestic production (GDP) in GCC countries. Moreover, in 2018, GCC imposed the value added tax (VAT), that could affect GCC economies significantly and negatively. As a result, GCC countries planned to diversify their economies based on their available resources. However, the GDP is one of the main indicator to measure the efficiency of any economy. Therefore, this study determines the positive and negative factors that affect GDP significantly. According to data collection, this study was gathered from World Bank and International Monetary Fund (IMF) databases. The statistical models that used in this study are ordinary least square OLS, fixed-effects model and random-effects model. The main findings proposed that GDP is affected positively from foreign direct investment (FDI) and corruption impacted GDP significantly and negatively.