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The impacts of the International Financial Crisis on Saudi Arabia's Economy: Evidence from Asymmetric SVAR modelling

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  • Ghassan, Hassan Belkacem
  • Alhajhoj, Hassan R.
  • Kbiri, Mohammed A.

Abstract

This paper aims to measure the impacts of the International Financial Crisis on the performance of the Saudi Arabian economy from 1968 to 2010. Linear and non-linear SVAR methodologies are used to exhibit the interdependence between the process of international liquidity, net exports, and economic growth. The empirical models show that the impacts of the international financial crisis led to an immediate drop in net exports and reduce gradually the real economic growth during roughly three years. On the horizon, the variation in economic growth is largely attributed to domestic supply shocks, but negative shocks of international financial markets drove to reduce the economic growth in the long run by 1.04%. Official URL is https://www.lifescienceglobal.com/pms/index.php/jrge/article/view/1488/pdf_5

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  • Ghassan, Hassan Belkacem & Alhajhoj, Hassan R. & Kbiri, Mohammed A., 2013. "The impacts of the International Financial Crisis on Saudi Arabia's Economy: Evidence from Asymmetric SVAR modelling," MPRA Paper 122987, University Library of Munich, Germany, revised 26 Sep 2013.
    • Handle: RePEc:pra:mprapa:122987
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    Cited by:

    1. Hassan Belkacem Ghassan & Abdelkrim Ahmed Guendouz, 2019. "Panel modeling of z-score: evidence from Islamic and conventional Saudi banks," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 448-468, July.
    2. Shaista Arshad, 2016. "The vicissitudes of stock markets and business cycles: focusing on the OIC region," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 9(1), pages 56-74, March.
    3. Ghassan, Hassan & Alhajhoj, Hassan R. & Balli, Faruk, 2018. "Bi-Demographic Changes and Current Account using SVAR Modeling: Evidence from Saudi Arabia," MPRA Paper 93013, University Library of Munich, Germany, revised 01 Feb 2019.
    4. Ghassan, Hassan B. & Al-Jefri, Essam H., 2016. "الحساب الجاري للاقتصاد السعودي عبر نموذج داخلي الزمن دلائل من منهجية نموذج التقهقر الذاتي البنيوي [The Current Account of Saudi Economy through Intertemporal Model: Evidence from SVAR]," MPRA Paper 80302, University Library of Munich, Germany, revised Jun 2017.
    5. Hassan Belkacem Ghassan & Hassan Rafdan Al-Hajhoj & Faruk Balli, 2019. "Bi-Demographic Changes and Current Account using SVAR Modeling: Evidence from Saudi Economy," Working Papers hal-01742574, HAL.
    6. Hassan B. Ghassan & Hassan R. Al-Hajhoj & Faruk Balli, 2018. "Bi-Demographic Changes and Current Account using SVAR Modeling," Papers 1803.11161, arXiv.org, revised Mar 2019.

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    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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