Tag Archive | "Saudi Arabia"

Cointegration and Causality between Economic Growth and Social Development in Saudi Arabia

This paper presents an attempt to examine the causal relationships between economic growth and social development in Saudi Arabia between 1980 and 2011. For that, statistical and econometric techniques, such as unit root test, cointegration and Granger Engels causality through Vector Error Correction Model (VECM) are applied.

Based on the aggregation of several indicators to construct a single social composite index, results show that there is significant long run causality from social development to economic growth. This indicates that trickle-up hypothesis is more active dominantly and that development strategies in Saudi Arabia have succeeded to reach significant social development enough to cause economic growth in the long run.

  Cointegration and Causality between Economic Growth and Social Development in Saudi Arabia (322.9 KiB, 3,106 hits)

Posted in Economics, Volume IV, Issue no. 2