Does Education Expenditure Promote Economic Growth in Saudi Arabia? An Econometric Analysis

Ageli, Dr Mohammed Moosa (2013): Does Education Expenditure Promote Economic Growth in Saudi Arabia? An Econometric Analysis. Published in: International Journal of Social Science Research , Vol. 1, No. 1 (2 May 2013): pp. 1-10.

Abstract

This paper investigates the Keynesian Relations and Education Expenditure in Saudi Arabia during the period (1970-2012) for real Oil GDP and Non Oil GDP. Keynesian Relations investigated that fundamental economic growth is validity to the education growth. In the previous tudies have been tested the three versions of Keynesian Relations to support the existence of long-run relationship between education expenditure and economic growth. We used a method as a time series econometrics techniques to examine how far Keynesian Relations validity can be applied in Saudi economy. The results obtained from the analyses find that the Keynesian proposition can explain the growth of education in Saudi Arabia, which holds for both the Oil and Non Oil income cases. The findings also note that the existence of strong causality for all of Keynesian Relations versions in the long run.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keynesian Relations, Ordinary Least Square (OLS), Co integration, Granger Causality, Error Correction Model (ECM), Augmented Dickey Fuller (ADF), Education Expenditure, Economic Growth, Saudi Arabia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I21 - Analysis of Education

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