The Effects of the Fiscal Policy on Economic Activity in Saudi Arabia: An Empirical Analysis
Issue Date
2013-12-31Author
Alkahtani, Kablan Jadia
Publisher
University of Kansas
Format
165 pages
Type
Dissertation
Degree Level
Ph.D.
Discipline
Economics
Rights
This item is protected by copyright and unless otherwise specified the copyright of this thesis/dissertation is held by the author.
Metadata
Show full item recordAbstract
The fiscal policy has been studied extensively, but only as a one shot deal and with emphasis on developed economies. The study of fiscal policy as a trajectory and of its consequences, also, as trajectory has been pioneered by Blanchard and Perotti (2002). This study applies the Blanchard-Perotti concept to Saudi Arabian economy. We used structural vector autoregression (SVAR) technique. The results show that government spending shocks have positive effects on GDP and private consumption, but they have negative effects on private investment (i.e., crowding out), exports and imports, while net tax revenue has a negative effect on GDP. When we extended the model by including inflation and interest rates, we obtained similar results. The government spending shocks are found to have positive effects on inflation and interest rates. As a check on our methodology, similar analyses are performed on Indonesia, Malaysia, and Norway and we found that they validate our findings.
Collections
- Dissertations [4713]
- Economics Dissertations and Theses [169]
Items in KU ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.
We want to hear from you! Please share your stories about how Open Access to this item benefits YOU.