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AuthorHemrit W.
AuthorBenlagha N.
Available date2020-03-29T12:12:13Z
Publication Date2018
Publication NameInternational Journal of Economics and Business Research
ResourceScopus
ISSN17569850
URIhttp://dx.doi.org/10.1504/IJEBR.2018.091050
URIhttp://hdl.handle.net/10576/13541
AbstractThis paper examines the multiplier effect of Government spending on the non-oil Saudi Arabia economic growth. We focus on non-oil GDP rather than total GDP because activity in the oil sector is mainly determined by circumstances in the international oil market. To reach this aim, we use several econometric tools as causality tests, co-integration test and structural VAR, to estimate the short- and long-run effects of government expenditures on non-oil GDP in Saudi Arabia. In this empirical investigation, we employ annual data covering the period from 1970 to 2015. Our empirical findings indicate an overall pro-growth effect of government expenditures, with significant positive fiscal multiplier in the health and agriculture sectors. By empirically assessing fiscal multipliers across diverse non-oil sectors, we perceived that variations in government expenditures are linked to same directional deviations in the growth of non-oil GDP during peak economic horizons. Especially, we find that if the economy is at a peak, we obtain suitable fiscal multipliers.
SponsorWe greatly appreciate the financial support by the Shiekh Al-Fouzan Saudi Macroeconomic Forecasting Chair (SMFChair), at Imam University, Riyadh, Saudi Arabia. We would especially like to thank the directors chair Dr. Khaled Almeshal for his constant and continuous encouragement during the achievement of this work.
Languageen
PublisherInderscience Publishers
SubjectGovernment spending
Multiplier effect
Non-oil GDP
Saudi Arabia
Vector autoregressive
TitleThe impact of government spending on non-oil-GDP in Saudi Arabia (multiplier analysis)
TypeArticle
Pagination350-372
Issue Number3
Volume Number15
dc.accessType Abstract Only


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