On the Causal Relationship between Household Consumption and Economic Growth in Saudi Arabia

Moayad Al Rasasi, Yasir Alzahrani and Mohammed Alassaf

Business and Economic Research, 2021, vol. 11, issue 2, 165-177

Abstract: This research paper explores the causal relationship between household consumption and economic growth over the period of 1980-2017. Hence, it applies the popular cointegration tests alongside the most common causality test. The empirical analysis shows the presence of a positive long run relationship between household consumption and economic growth. In specific, we find evidence revealing that a one percent increase in household expenditures on consumption would boost economic growth by 0.7 percent. Furthermore, causality analysis, based on Granger (1969) test, suggests that variation in household consumptions could explain changes in economic growth.

Keywords: consumption; economic growth; causality; cointegration (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.macrothink.org/journal/index.php/ber/article/view/18386/14361 (application/pdf)
http://www.macrothink.org/journal/index.php/ber/article/view/18386 (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:mth:ber888:v:11:y:2021:i:2:p:165-177

Access Statistics for this article

Business and Economic Research is currently edited by Daisy Young

More articles in Business and Economic Research from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).