Economic Growth And Government Spending In Saudi Arabia
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Economic Growth and Government Spending in Saudi Arabia
Author | : Mr.Saad A. Alshahrani |
Publisher | : International Monetary Fund |
Total Pages | : 26 |
Release | : 2014-01-13 |
Genre | : Business & Economics |
ISBN | : 1484348796 |
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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.
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