Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia

Volume: 7 Number: 4 December 1, 2017
  • İbrahim Muhammad Muye
  • Rayyan Abdulkareem Kaita
  • Ahmad Fahmi Sheikh Hassan
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia

Abstract

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.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

İbrahim Muhammad Muye This is me

Rayyan Abdulkareem Kaita This is me

Ahmad Fahmi Sheikh Hassan This is me

Publication Date

December 1, 2017

Submission Date

December 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 4

IZ

https://izlik.org/JA32AC77DK

Cite

RIS / Bibtex
APA
Muye, İ. M., Kaita, R. A., & Hassan, A. F. S. (2017). Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia. International Journal of Economics and Financial Issues, 7(4), 70-75. https://izlik.org/JA32AC77DK
AMA
1.Muye İM, Kaita RA, Hassan AFS. Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia. IJEFI. 2017;7(4):70-75. https://izlik.org/JA32AC77DK
Chicago
Muye, İbrahim Muhammad, Rayyan Abdulkareem Kaita, and Ahmad Fahmi Sheikh Hassan. 2017. “Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia”. International Journal of Economics and Financial Issues 7 (4): 70-75. https://izlik.org/JA32AC77DK.
EndNote
Muye İM, Kaita RA, Hassan AFS (December 1, 2017) Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia. International Journal of Economics and Financial Issues 7 4 70–75.
IEEE
[1]İ. M. Muye, R. A. Kaita, and A. F. S. Hassan, “Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia”, IJEFI, vol. 7, no. 4, pp. 70–75, Dec. 2017, [Online]. Available: https://izlik.org/JA32AC77DK
ISNAD
Muye, İbrahim Muhammad - Kaita, Rayyan Abdulkareem - Hassan, Ahmad Fahmi Sheikh. “Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia”. International Journal of Economics and Financial Issues 7/4 (December 1, 2017): 70-75. https://izlik.org/JA32AC77DK.
JAMA
1.Muye İM, Kaita RA, Hassan AFS. Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia. IJEFI. 2017;7:70–75.
MLA
Muye, İbrahim Muhammad, et al. “Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia”. International Journal of Economics and Financial Issues, vol. 7, no. 4, Dec. 2017, pp. 70-75, https://izlik.org/JA32AC77DK.
Vancouver
1.İbrahim Muhammad Muye, Rayyan Abdulkareem Kaita, Ahmad Fahmi Sheikh Hassan. Debt and Economic Growth in an Oil Rich Economy: Evidence from Saudi Arabia. IJEFI [Internet]. 2017 Dec. 1;7(4):70-5. Available from: https://izlik.org/JA32AC77DK