Nonlinear Fiscal Multipliers in Saudi Arabia

Raja AlMarzoqi, Sarra Ben Slimane () and Saud Altamimi
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Raja AlMarzoqi: Prince Saud Al Faisal Institute for Diplomatic Studies, Riyadh 11553, Saudi Arabia
Sarra Ben Slimane: Faculty of Business Administration, University of Tabuk, Tabuk 71491, Saudi Arabia
Saud Altamimi: Saudi Arabian Monetary Authority, Riyadh 12632, Saudi Arabia

Economies, 2023, vol. 11, issue 1, 1-16

Abstract: This paper presents an estimation of the fiscal multipliers for Saudi Arabia, conducted by applying the local projection (LP) method. It also presents an exploration of the non-linear features of fiscal multipliers. The findings showed that (i) consistent with earlier studies, fiscal multipliers are generally moderate; (ii) the investment spending multiplier is larger in magnitude than the current spending multiplier; (iii) the non-oil revenue multiplier is negative; (iv) the output response to fiscal shocks is larger during expansions; and (v) fiscal multipliers are stronger during a contractionary fiscal policy phase.

Keywords: government spending; non-oil revenue; non-linear fiscal multipliers; local projection method; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:11:y:2023:i:1:p:11-:d:1024694

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