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اختبار أثر مزاحمة الإنفاق الحكومي للإستثمار الخاص في الاقتصاد السعودي عبر المعاينة المعادة
[Crowding out Test of Government Expenditures to Private Investment in Saudi Arabia using Bootstrapping]

Author

Listed:
  • Ghassan, Hassan B.
  • Alhajhoj, Hassan R.

Abstract

This research aims to study the nature of the relationship between the government spending and the private investment in the non-oil sectors of the Saudi economy through testing the crowding out effect during four decades and using the Bootstrapping technique. Firstly we use the Box-Cox transformation to obtain a best model and we use also the test of cointegration, the causality test and the maximum likelihood estimation. The findings indicate that there is some evidence of the crowding out effect of the investment spending of the public enterprises on the private investment. Meanwhile, government spending on infrastructure is a catalyst to increase the level of private investment. We turn out also that the crowding in effect exceeds the crowding out effect. For the robustness of our results, we implement bootstrapping, which confirm the obtained results through linking the LR statistics to our main sample.

Suggested Citation

  • Ghassan, Hassan B. & Alhajhoj, Hassan R., 2009. "اختبار أثر مزاحمة الإنفاق الحكومي للإستثمار الخاص في الاقتصاد السعودي عبر المعاينة المعادة [Crowding out Test of Government Expenditures to Private Investment in Saudi Arabia using Bootstrapping]," MPRA Paper 54453, University Library of Munich, Germany, revised 2009.
    • Handle: RePEc:pra:mprapa:54453
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    References listed on IDEAS

    as
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    2. António Afonso & Miguel St. Aubyn, 2009. "Macroeconomic Rates Of Return Of Public And Private Investment: Crowding‐In And Crowding‐Out Effects," Manchester School, University of Manchester, vol. 77(s1), pages 21-39, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    crowding out; Investment; Box-Cox; Bootstrapping; Saudi Arabia;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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