Money, Income, and Prices in Saudi Arabia

Dr. Mohamed Abdel Rahman Salih; M Salih

Money, Income, and Prices in Saudi Arabia

Dr. Mohamed Abdel Rahman Salih * §

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M Salih

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Taibah University

Money, Income, and Prices in Saudi Arabia

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Abstract

The paper examines the relationship between the three macroeconomic variables money, income, and prices in the Saudi Arabian economy. The methodology used is cointegration, bivariate and trivariate Vector Autoregressive (VAR) models, and Granger Causality/Block Exogeneity tests. We further supplement our results with impulse response and variance decomposition. The results for Saudi Arabia for the period 1968-2011 indicate two-way causation between income and money supply. The results also show that income Granger causes prices, and money Granger causes money prices.

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26 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Mohamed Abdel Rahman Salih, M Salih. . "Money, Income, and Prices in Saudi Arabia". Global Journal of Management and Business Research GJMBR Volume 13 (GJMBR Volume 13 Issue 1).

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GJMBR Volume 13 Issue 1

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

granger causality impulse response Income money supply prices saudi arabia variance decomposition vector autoregressive

Classification

GJMBR Classification JEL Code: 940108

720105

Submission ReceivedNovember 25, 2012
Peer Review Double Blind
Handling Editor
Accepted December 25, 2012
Published January 9, 2013

Version of record

v1.2

Language

English

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Article Matrices

Total Score: 173

Country: Saudi Arabia

Subject: Global Journal of Management and Business Research

Authors: Dr. Mohamed Abdel Rahman Salih (PhD/Dr. count: 1)

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Publish Date: 2013 01, Wed

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Total Views: 6.5K

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