American International Journal of Social Science

The Impact of Private Sector Credit on Saudi Arabia Economic Growth (GDP): An Econometrics Model Using (ARDL) Approach to Cointegration
Dr. Eyas Gaffar Abdelraheem Osman

Abstract
In this paper the autoregressive distributed lag (ARDL) models has been applied as an approach to cointegration, on annual time series data from (1974-2012) to investigate the relationship between private sector credit and economic growth in Saudi Arabia. Six variables were used, mainly GDP, private sector credit (BF) , and the rest other four control variables ,commercial bank's deposits (DS) ,government expenditure (G) , inflation rate (CPI) and open economy (OPE). Where the study found different results on the results of other researchers, The study found that there is a long-run relationship between (BF) and economic growth .Moreover, (BF) has positive long and short-run relationship and the elasticity of GDP to the (BF) was (0.054) and (0.068) for long-run and shortrun respectively.

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