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Author(s) AIi Othman AI-Hakami
Affiliation Assistant Professor, Department of Economics, College of Administrative Sciences, King Saud University, Riyadh, Saudi Arabia
Title A Time-series Analysis of the Relationship between Government Expenditure and GDPin the Kingdom of Saudi Arabia (1965-1996)
Source Journal of King Saud University. Administrative Sciences. Volume 14, No 2. (2002/1422)
Abstract The main objective of this paper is to examine statistically the causal relationship between government expenditure and gross domestic product in Saudi Arabia over the period 1965-1996.The study applies recent developments in time-series analysis to test statistical characteristics of both variables. The stationarity and cointegration tests indicate that government expenditure and GD? are first-difference stationary and cointegrated. The Granger causality statistical results provide some evidence of a unidirectional causation running from gross domestic product to government expenditure in Saudi Arabia over the period of 1965-1998.