The Relationship between Saving and Investment: The Case of Saudi Arabia

Abdulelah Alrasheedy and Hamed Alaidarous

International Journal of Economics and Finance, 2019, vol. 11, issue 11, 64

Abstract: It is an attempt to investigate the relationship between saving and investment and the mechanism of the way they influence the economic growth. It is very vital to study such causality to help policy makers setting out appropriate economic policies. It is taking us too long to come up with the results because of the lack of data, and the complexity of how saving and investment defined in case of Saudi economy. The results show that there is a bidirectional granger causality between private saving and private GDP, and unidirectional causality running from private saving to private investment. However, there is an ambiguous relationship missing between investment and economic growth at both aggregate and private levels. Finally, although this study shows the directional of causality between the three considered variables, the study could not catch up the magnitude of the impact of these variables on each other.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijef/article/download/0/0/41176/42572 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/41176 (text/html)

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:ibn:ijefaa:v:11:y:2019:i:11:p:64

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().