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Economic growth and savings in Saudi Arabia: empirical evidence from cointegration and causality analysis

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  • Jamel Jouini

Abstract

The similar evolution of GDP and savings, the high level of natural resources, and the high financial surplus of Saudi Arabia motivate us to examine the linkages between economic growth and savings from 1980 to 2012 in the ARDL framework. By incorporating relevant determinants, we find cointegration among the variables and positive two-way Granger-causality between economic growth and savings over the long- and short-run. Authorities should thus pursue policies that promote economic growth and savings, to achieve higher levels of both. The results are robust to using alternative specifications and econometric procedures, and show stable economic growth and savings functions.

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  • Jamel Jouini, 2016. "Economic growth and savings in Saudi Arabia: empirical evidence from cointegration and causality analysis," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 23(4), pages 478-495, October.
    • Handle: RePEc:taf:raaexx:v:23:y:2016:i:4:p:478-495
    DOI: 10.1080/16081625.2015.1129282
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    1. Adil Saleem & Judit Sági & Budi Setiawan, 2021. "Islamic Financial Depth, Financial Intermediation, and Sustainable Economic Growth: ARDL Approach," Economies, MDPI, vol. 9(2), pages 1-22, April.

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