Financial Development And Economic Growth In Saudi Arabian Economy

Mohamed Ibrahim

Applied Econometrics and International Development, 2013, vol. 13, issue 1, 133-144

Abstract: This study investigates the relationship between financial development and economic growth for Saudi Arabia for the period 1989-2008 by using fully modified ordinary least squares (FMOLS) approach. Financial market development has been represented by the effect of credit market development (bank credits to the private sector) and stock market development (The general stock market index). The results indicate that the domestic bank credit to the private sector has significant and positive effect on economic growth in the long run, but insignificant and negative effect in the short run. On the other hand, stock market index has expected positive but insignificant effect in the long run but unexpected and insignificant effect in the short run. Finally, the growth of industrial production has expected positive and significant effect on economic growth either in the short or long run.

Keywords: Financial Development; Economic Growth; FMOLS; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: C22 O11 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.usc.es/economet/reviews/aeid13111.pdf
No.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:13:y:2013:i:1_11

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().