Associated Professor, Department of Economics, College of Admi~istrative Sciences, King Saud University
Title
Crowding-out between Public and Private Spending (A Case Study of Saudi Arabia)
Source
Journal of King Saud University. Administrative Sciences. Volume 14, No 2. (2002/1422)
Abstract
We Study in this research the relationship between three types of government expenditures namely consumption, investment, and intTastructure expenditure on one hand and the private investment expenditure on the other. The Period of the study is 1970-1998, which witnessed high and continues increases of government expenditures. Inflation and openness were included to explain variation in the private investmen~? Results showed a crowding - out effect of two kinds of government expenditures namely consumption expenditure and the investment expenditure. The infrastructure expenditure has, however shown a positive effect on private investment. Also the inflation, and the openness variables maintained positive results with the private investment expenditure. The result of the study was in line with several empirical findings on both developing and developed countries.