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Nonlinear Fiscal Multipliers in Saudi Arabia

Author

Listed:
  • Raja AlMarzoqi

    (Prince Saud Al Faisal Institute for Diplomatic Studies, Riyadh 11553, Saudi Arabia)

  • Sarra Ben Slimane

    (Faculty of Business Administration, University of Tabuk, Tabuk 71491, Saudi Arabia)

  • Saud Altamimi

    (Saudi Arabian Monetary Authority, Riyadh 12632, Saudi Arabia)

Abstract

This paper presents an estimation of the fiscal multipliers for Saudi Arabia, conducted by applying the local projection (LP) method. It also presents an exploration of the non-linear features of fiscal multipliers. The findings showed that (i) consistent with earlier studies, fiscal multipliers are generally moderate; (ii) the investment spending multiplier is larger in magnitude than the current spending multiplier; (iii) the non-oil revenue multiplier is negative; (iv) the output response to fiscal shocks is larger during expansions; and (v) fiscal multipliers are stronger during a contractionary fiscal policy phase.

Suggested Citation

  • Raja AlMarzoqi & Sarra Ben Slimane & Saud Altamimi, 2023. "Nonlinear Fiscal Multipliers in Saudi Arabia," Economies, MDPI, vol. 11(1), pages 1-16, January.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:1:p:11-:d:1024694
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    References listed on IDEAS

    as
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