Consequential Effects of Defence Expenditure on Economic Growth of Saudi Arabia: 1970-2012
AbstractThis study investigates the causality relationship between defence expenditures and Non Oil economic growth in Saudi Arabia over the period 1970-2012. Using Unit root tests, Johansen’s co-integration test and Granger Causality test. In this paper we found the existence of bi-directional causality relationship running from Non Oil-GDP to defence expenditure. The results show that, in Saudi Arabia, the model of defence expenditure is found to hold for Non Oil-GDP.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46590.
Date of creation: 15 Oct 2012
Date of revision:
Publication status: Published in International Journal of Economics and Finance 2.5(2013): pp. 155-163
Defence Expenditure; Economic Growth; Unit Root test; Co-integration test; Granger causality and Error Correction Models (ECM); Saudi Arabia;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-05 (All new papers)
- NEP-ARA-2013-05-05 (MENA - Middle East & North Africa)
- NEP-FDG-2013-05-05 (Financial Development & Growth)
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