Impact of savings on economic growth : approach by ARDL and Toda-Yamamoto : case of Saudi Arabia

الملخص EN

The main purpose is to investigate the long-run equilibrium relationship between savings and economic growth for Saudi Arabia from 1971 to 2018 by using the ARDL co-integration approach of Pesaran & Shin (2001) as well as Toda-Yamamoto test (1995) of no causality.

The findings of ARDL bound test show that there is co-integration between variables and a significant positive impact of savings on economic growth in short and long run.

Additionally, the Toda-Yamamoto test found out bi-directional causal relationship.