Economic Growth and Government Spending in Saudi Arabia: an Empirical Investigation

January 13, 2014

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Saad A. Alshahrani, and Ali J Al-Sadiq. Economic Growth and Government Spending in Saudi Arabia: an Empirical Investigation, (USA: International Monetary Fund, 2014) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper empirically examines the effects of different types of government expenditures, on economic growth in Saudi Arabia. We use different econometric techniques to estimate the short- and long-run effects of these expenditures on growth and employ annual data over the period 1969-2010. Our findings indicate that while private domestic and public investments, as well as healthcare expenditure, stimulate growth in the long-run, openness to trade and spending in the housing sector can also boost short-run production. These findings draw some policy implications for Saudi policymakers on maximizing the returns of the government spending on economic growth.

Subject: Capital spending, Current spending, Expenditure, Health care spending, Total expenditures

Keywords: Africa, Capital spending, Consumption activity, Current spending, East Africa, Economic Growth, Financing investment, Global, Government consumption expenditure, Government expenditure, Government spending, Growth rate, Health care spending, Housing expenditure shock, Middle East, North Africa, Oil Exporting Economy, Saudi Arabia, Total expenditures, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/003
Stock No:

WPIEA2014003
ISBN:

9781484348796
ISSN:

1018-5941

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