IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v6y2018i1p1512835.html
   My bibliography  Save this article

Asymmetric impacts of oil price shocks on government expenditures: Evidence from Saudi Arabia

Author

Listed:
  • Hany Abdel-Latif
  • Rehab A. Osman
  • Heba Ahmed

Abstract

This paper investigates the effect of oil price shocks on government expenditures on the health and education sectors in Saudi Arabia. Using a quarterly dataset 1990Q1–2017Q2 and employing a non-linear autoregressive distributed lag (NARDL) model, our research shows evidence of a non-linear relationship between oil prices and government expenditures in Saudi Arabia, where a negative oil price shock would have a statistically significant different impact in the long run compared to a positive shock. We build upon our empirical findings and draw some policy recommendations for Vision 2030 of Saudi Arabia.

Suggested Citation

  • Hany Abdel-Latif & Rehab A. Osman & Heba Ahmed, 2018. "Asymmetric impacts of oil price shocks on government expenditures: Evidence from Saudi Arabia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1512835-151, January.
    • Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512835
    DOI: 10.1080/23322039.2018.1512835
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2018.1512835
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2018.1512835?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adrian Neacsa & Jianu Daniel Muresan & Marian Catalin Voica & Otilia Manta & Mihail Vincentiu Ivan, 2023. "Oil Price—A Sensor for the Performance of Romanian Oil Manufacturing Companies," Energies, MDPI, vol. 16(5), pages 1-18, February.
    2. Seyfettin Erdo an & Emrah smail evik & Ayfer Gedikli, 2020. "Healthcare Expenditures Channel of Natural Resource Curse: The Case of Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 285-293.
    3. Anthony Enisan Akinlo & Michael Segun Ojo, 2021. "Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria," SN Business & Economics, Springer, vol. 1(10), pages 1-16, October.
    4. Sugra Humbatova & Afag Huseyn & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Investment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 129-148, March.
    5. Hany Abdel‐Latif & Mahmoud El‐Gamal, 2022. "White elephants on quicksand: Low oil prices and high geopolitical risk," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(1), pages 60-107, February.
    6. Nurudeen Abu & Joseph David & Musa Abdullahi Sakanko & Ben-Obi Onyewuchi Amaechi, 2022. "Oil Price and Public Expenditure Relationship in Nigeria: Does the Level of Corruption Matter?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 59-80.
    7. Sanusi Yakubu Muhammad & Isah Auwal & Bello Abdulmajeed Kumo & Yusuf Fadimah, 2023. "Oil Price and Stock Market Nexus in Nigeria: An Asymmetric Cointegration Based on Non-Linear Ardl Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 573-591, November.
    8. Anis Ali, 2021. "Do Oil Prices Govern GDP and Public Spending Avenues in Saudi Arabia? Sensitivity and Trend Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 104-109.
    9. Abdul Rahman Shaik & Anis Ali & Ibtisam Dhuwayhi Alanazi, 2023. "Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 158-163, May.
    10. Md Fouad Bin Amin & Mohd Ziaur Rehman, 2022. "Asymmetric Linkages of Oil Prices, Money Supply, and TASI on Sectoral Stock Prices in Saudi Arabia: A Non-Linear ARDL Approach," SAGE Open, , vol. 12(1), pages 21582440211, January.
    11. Akinlo, Anthony Enisan, 2024. "Oil Price Shocks and Income Inequality in Nigeria: Evidence from Nonlinear ARDL Approach," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.
    12. Engy Raouf, 2021. "Oil Prices Shocks and Government Expenditure," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 78-84.
    13. Anis Ali, 2021. "Volatility of Oil Prices and Public Spending in Saudi Arabia: Sensitivity and Trend Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 165-172.
    14. Abdullah Mohammad Ghazi Al khatib & Bayan Mohamad Alshaib & Ali Mohamad Kanaan, 2023. "The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria," SAGE Open, , vol. 13(4), pages 21582440231, December.
    15. Dong, Xueqin & Dong, Dongdong & Yu, Qing, 2024. "Impact of oil, gold, and energy prices on resources footprint: Evaluating the role of digital governance and financial development," Resources Policy, Elsevier, vol. 92(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512835. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.