ARTÍCULO
TITULO

Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia

Ibrahim Muhammad Muye    
Rayyan Abdulkareem Kaita    
Ahmad Fahmi Sheikh Hassan    

Resumen

The objective of this paper is to examine the impact of debt on economic growth in Saudi Arabia based on autoregressive distributed lags (ARDL) approach for the period of 1969?2013. The result indicates that variables are cointegrated and null hypothesis was rejected at the 5% significance level. The coefficients of long-run result reveal that public debt affects economic growth in a positive and statistically significant manner. Furthermore, inflation was found to also enhance economic growth in the oil rich kingdom. Despite the overwhelming evidence in the literature suggesting debt stifles growth, our study recommend that policymakers maintain the current level of debt-to-GDP in the country.Keywords: Public debt, Economic Growth, Inflation, ARDLJEL Classifications: H61, H62, H63

 Artículos similares

       
 
Musumba Batondo and Josine Uwilingiye    
During the past two decades, financial markets across the globe have experienced sporadic waves of crashes. Such waves raise concerns about the vulnerability of global financial markets and the transmission mechanisms of shocks beyond borders. The curren... ver más

 
Sayef Bakari, Sofien Tiba     Pág. 29 - 37
This paper aimed at examining the tie between domestic investment, total consumption, and external debt in the case of Tunisia over the period 1970-2017. By applying the VECM, in the long-run, our findings recorded the fact that that external debt and do... ver más

 
Ahmad Irfan Nurhakim, Raden Aditya Kristamtomo     Pág. 107 - 116
State-owned enterprises (BUMN) liquid a form of government investment that manages the life of many people, state-owned construction (KARYA) liquid state-owned enterprises that focus on the field of considerable construction is very influential in all as... ver más

 
Comfort Omolayo Rotimi,Naphtali John,Mathew Ekundayo Rotimi,Mishelle Doorasamy     Pág. 310 - 325
Inadequate revenue generation impedes economic growth. The issue has lacked attention from academics. Therefore, this study focuses on the relationship between revenue generation and economic growth in Nigeria. It employed time series data sourced from t... ver más

 
Hefrizal Handra,Budi Kurniawan     Pág. 96 - 100
This study examines long-run relationship between the government debt and economic growth in Indonesia. This study uses the Autoregressive Distributed Lag (ARDL) cointegration method. Employing a time series data from 1980 to 2017, this study reveals tha... ver más