Econometric Testing of the Displacement Effect: the Saudi Experience
AbstractIn this paper we have to explore the Displacement Effect in Saudi Arabia during the period (1970-2012) for real oil GDP and Non Oil GDP. We used a method as a time series econometrics techniques to examine how far the Displacement Effect validity can be applied in Saudi economy, by Using time series annual data for the periods during (1970 to 2012), (1970 to 1990) and (1991 to 2012). Three distinct time series techniques have been applied. The results obtained from the analyses find that the Peacock and Wiseman Version of Wagnerian proposition can explain the growth of government in Saudi Arabia, which holds for both the oil and non-oil income cases, and we have a structural break in the data. The findings also note that the existence of strong causality for Peacock and Wiseman Version of Wagner‟s law in the long run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50565.
Date of creation: 13 Jul 2013
Date of revision:
Publication status: Published in Journal of Transformative Entrepreneurship 2.1(2013): pp. 100-111
Displacement Effect; Co-integration; Error Correction Model; Augmented Dickey Fuller; Government Expenditure; Economic Growth; Saudi Arabia;
Find related papers by JEL classification:
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- 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-2013-10-18 (All new papers)
- NEP-ARA-2013-10-18 (MENA - Middle East & North Africa)
- NEP-FDG-2013-10-18 (Financial Development & Growth)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Gabriella Legrenzi, 2004. "The Displacement Effect in the Growth of Governments," Public Choice, Springer, vol. 120(1_2), pages 191-204, 07.
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