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Oil Income, Non Oil Income and Government Support: A Case of Saudi Arabia

المصدر: مجلة الدراسات والبحوث التجارية
الناشر: جامعة بنها - كلية التجارة
المؤلف الرئيسي: Alkhteeb, Tarek Tawfik (Author)
المجلد/العدد: س37, ع1
محكمة: نعم
الدولة: مصر
التاريخ الميلادي: 2017
الصفحات: 661 - 675
ISSN: 1110-1547
رقم MD: 1181370
نوع المحتوى: بحوث ومقالات
اللغة: الإنجليزية
قواعد المعلومات: EcoLink
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المستخلص: In this paper, we have tested the applicableness of Wagner's Law in the case of Saudi Arabia. We have used annual data series of capital expenditures and revenue expenditures of government. Also, we have used Oil-GDP and Non-oil GDP in the analysis to test the impact of income growth on government spendings. Further, we have used DF-GLS unit root test for stationarity analysis and ARDL cointegration technique for long and short run analysis. Our results shows a strong long and short run relationships for both capital expenditures and revenue expenditures models. Further, we have found a positive and significant impact of non-oil GDP on both kinds of government spending in long run and a positive and significant impact of oil-GDP on both kinds of government spending in short run. These are evidence for holding Wagner’s law in Saudi Arabia. Based on our results, we are proposing the government to rationalize its spending in long and short run to support a sound economic growth.

ISSN: 1110-1547