EconPapers    
Economics at your fingertips  
 

الحساب الجاري للاقتصاد السعودي عبر نموذج داخلي الزمن دلائل من منهجية نموذج التقهقر الذاتي البنيوي

The Current Account of Saudi Economy through Intertemporal Model: Evidence from SVAR

Hassan Ghassan () and Al-Jefri, Essam H.

MPRA Paper from University Library of Munich, Germany

Abstract: The paper aims to analyze the current account of the Saudi economy using an intertemporal modeling and tested by the structural VAR methodology. By deriving the long-run current account to GDP ratio, we analyze the impacts of global and local shocks on the current account. Considering that the Saudi economy is linked to international demand for oil products and domestic demand for consumer goods and technological products, the variances in the current account and output are inevitably influenced by international shocks. The findings indicate that the long-run impact of local shocks on the current account variance exceeds by 3.92 percent its impact on the output variance, reflecting the explanation power of local dynamic shock on the current account growth. Most of the previous papers suggest that the local impact dominates the international one (Souki and Enders 2008), and few papers advocate that the global impact exceeds the domestic effect Hoffmann (2013). The shocks analysis on the Saudi current account exhibits the relative dominance of the global markets shocks, but local and mainly supply shocks have significant impacts on the current account, referring to a dual local and global influence.

Keywords: Current account; Intertemporal modeling; Shocks; SVAR model; KSA. (search for similar items in EconPapers)
JEL-codes: C5 F4 G1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara and nep-mac
Date: 2016-09, Revised 2017-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Arab Economic and Business Journal Forthcoming...(2017): pp. 1-26

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/80302/1/MPRA_paper_80302.pdf original version (application/pdf)

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:pra:mprapa:80302

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-10-12
Handle: RePEc:pra:mprapa:80302