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AuthorBenlagha, Noureddine
AuthorCharfeddine, Lanouar
Available date2021-12-15T09:05:08Z
Publication Date2021-12-08
Publication NameStudies in Business and Economics
Identifierhttp://dx.doi.org/10.29117/sbe.2021.0127
CitationBenlagha, N., & Charfeddine, L. (2021). Analysis of the Effect of the European Debt Crisis on the Saudi Arabian Economy. Studies In Business And Economics, 24(1), 61-85. doi: 10.29117/sbe.2021.0127
ISSN1818-1228
URIhttp://hdl.handle.net/10576/25586
AbstractThis paper investigates the economic impact of the 2009 European debt crisis on Saudi Arabia’s real economy from 2004 Q2 to 2014 Q2 using a structural vector autoregressive model (SVAR). The results of the impulse response functions obtained from the aggregated data show that the shock to European imports from Saudi Arabia had a significant impact on the real effective exchange rate, inflation rate, and economic growth that lasted for three periods. Moreover, the variance decomposition analysis shows that Europe’s imports from Saudi Arabia explain approximately 20% of the variance of the Saudi real effective exchange rate and real economic growth, 10% of the interest rate variability, and only 5% of the inflation rate variance. The results of the individual country analysis show that the impact of shocks to imports from all European countries had an instantaneous impact, except for France and Spain, where the impact on the economic growth was significant in the second and sixth periods respectively. The results suggest that Saudi Arabian policymakers should continue the process of export diversification in order to reduce its dependence on this region.
Languageen
PublisherQatar University Press
SubjectEuropean Debt Crisis
Real Economy
Structural VAR
Saudi Arabia. JEL Classification
B17
C58
G01
G17
TitleAnalysis Of The Effect Of The European Debt Crisis On The Saudi Arabian Economy
TypeArticle
Pagination61-85
Issue Number1
Volume Number24
dc.accessType Open Access


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