TY  - JOUR
TT  - Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia
AU  - Muye, İbrahim Muhammad
AU  - Kaita, Rayyan Abdulkareem
AU  - Hassan, Ahmad Fahmi Sheikh
PY  - 2017
DA  - December
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 70
EP  - 75
VL  - 7
IS  - 4
KW  - Public Debt
KW  - Economic Growth
KW  - Inflation
KW  - Autoregressive Distributed Lags
N2  - The objective of this paper is to examine the impact of debt on economic growth in Saudi Arabia based on autoregressive distributed lags (ARDL) approach for the period of 1969–2013. The result indicates that variables are cointegrated and null hypothesis was rejected at the 5% significance level. The coefficients of long-run result reveal that public debt affects economic growth in a positive and statistically significant manner. Furthermore, inflation was found to also enhance economic growth in the oil rich kingdom. Despite the overwhelming evidence in the literature suggesting debt stifles growth, our study recommend that policymakers maintain the current level of debt-to-GDP in the country.
UR  - https://dergipark.org.tr/en/pub/ijefi/issue//353515
L1  - https://dergipark.org.tr/en/download/article-file/364541
ER  -