المستخلص: |
In this paper we investigate the causality and co-integration between inventory investment and various types of Saudi Arabia’s GDP. Saudi Arabia is an oil-based economy; therefore its total GDP is in fact disaggregated into three types of GDP; oil GDP, private GDP, and government GDP. Using annual data from 1968 to 2011, we tested short- run and long-run causality. Our results indicate that for inventory and government GDP, both types of causality run from the former to the latter, while there is a long-run causality running from inventory to private GDP, and a short-run causality running from inventory to oil GDP.
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