Bound Cointegration Test on Private Investment’s Equation: Evidence from Saudi Economy
Abstract
This paper investigates the long-run equilibrium relationship between the real private and public investment in Saudi Arabia by using ARDL cointegration tests. The finding shows the stable long-run relation between private investment and public investment. The results indicate that the disequilibrium is largely corrected and converges back to the equilibrium in one year and four months, with a speed of adjustment at rate of about 75 per cent a year.This result supports that the Saudi economy is resilient against the shocks.Download Info
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Bibliographic Info
Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 12 (2012)
Issue (Month): 1 ()
Pages:
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Related research
Keywords: Private Investment; Public Investment; ARDL Cointegration; Saudi Arabia;Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
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