Saudi Financial Structure and Economic Growth: A Macroeconometric Approach
AbstractThis paper investigates the nexus between financial sector development and economic growth in the Saudi economy over the period 1970-2012 by using four alternative proxies for financial development and several techniques including unit root tests, the co-integration test, the Granger Causality Test, and the Vector Error Correction Model (VECM). We used time series econometrics techniques to examine the causal relationship between financial sector development and economic growth in the Saudi economy. The results obtained from the analyses show that there is a positive relationship between financial sector development and economic growth in Saudi Arabia. The development of the financial system will thus have a positive impact on the growth of the Saudi economy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46591.
Date of creation: 29 Jan 2013
Date of revision:
Publication status: Published in International Journal of Economics and Finance 3.5(2013): pp. 30-35
Financial Sector Development; Unit Root test; co-integration test; Vector Error Correction Model (VECM); Augmented Dickey Fuller (ADF); Economic Growth; Saudi Arabia;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - 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-CWA-2013-05-05 (Central & Western Asia)
- NEP-FDG-2013-05-05 (Financial Development & Growth)
- NEP-MAC-2013-05-05 (Macroeconomics)
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