Debt and economic growth in an oil rich economy: evidence from Saudi Arabia
The objective of this paper is to examine the impact of debt on economic growth in Saudi Arabia based on autoregressive distributed lags 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 coeff...
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| Format: | Article |
| Language: | English |
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EconJournals
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/60592/ http://psasir.upm.edu.my/id/eprint/60592/1/Debt%20and%20economic%20growth%20in%20an%20oil%20rich%20economy%20evidence%20from%20Saudi%20Arabia.pdf |
| _version_ | 1848854238162059264 |
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| author | Muye, Ibrahim Muhammad Kaita, Rayyan Abdulkareem Sheikh Hassan, Ahmad Fahmi |
| author_facet | Muye, Ibrahim Muhammad Kaita, Rayyan Abdulkareem Sheikh Hassan, Ahmad Fahmi |
| author_sort | Muye, Ibrahim Muhammad |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The objective of this paper is to examine the impact of debt on economic growth in Saudi Arabia based on autoregressive distributed lags 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- gross domestic product in the country. |
| first_indexed | 2025-11-15T11:06:41Z |
| format | Article |
| id | upm-60592 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:06:41Z |
| publishDate | 2017 |
| publisher | EconJournals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-605922018-06-07T08:45:58Z http://psasir.upm.edu.my/id/eprint/60592/ Debt and economic growth in an oil rich economy: evidence from Saudi Arabia Muye, Ibrahim Muhammad Kaita, Rayyan Abdulkareem Sheikh Hassan, Ahmad Fahmi The objective of this paper is to examine the impact of debt on economic growth in Saudi Arabia based on autoregressive distributed lags 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- gross domestic product in the country. EconJournals 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/60592/1/Debt%20and%20economic%20growth%20in%20an%20oil%20rich%20economy%20evidence%20from%20Saudi%20Arabia.pdf Muye, Ibrahim Muhammad and Kaita, Rayyan Abdulkareem and Sheikh Hassan, Ahmad Fahmi (2017) Debt and economic growth in an oil rich economy: evidence from Saudi Arabia. International Journal of Economics and Financial Issues, 7 (4). pp. 70-75. ISSN 2146-4138 https://www.econjournals.com/index.php/ijefi/article/view/4672 |
| spellingShingle | Muye, Ibrahim Muhammad Kaita, Rayyan Abdulkareem Sheikh Hassan, Ahmad Fahmi Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title | Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title_full | Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title_fullStr | Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title_full_unstemmed | Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title_short | Debt and economic growth in an oil rich economy: evidence from Saudi Arabia |
| title_sort | debt and economic growth in an oil rich economy: evidence from saudi arabia |
| url | http://psasir.upm.edu.my/id/eprint/60592/ http://psasir.upm.edu.my/id/eprint/60592/ http://psasir.upm.edu.my/id/eprint/60592/1/Debt%20and%20economic%20growth%20in%20an%20oil%20rich%20economy%20evidence%20from%20Saudi%20Arabia.pdf |