Oil Prices, Control of Corruption, Governance, and Economic Growth Nexus in Saudi Arabia

Authors

  • Haider Mahmood Associate Professor, Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, 173 Alkharj 11942, Saudi Arabia. http://orcid.org/0000-0002-6474-4338

Abstract

This study examines the impact of control of corruption and the effectiveness of governance on the economic growth in Saudi Arabia using the latest cointegration approach of Pesaran et al. (2001) and Kripfganz and Schneider (2019). We utilize unit root and cointegration tests using a maximum available sample from 1996-2019. The effect of control of corruption is found insignificant on economic growth, and a positive effect of governance is found in the long-run. The study is corroborated that good governance is an appropriate tool for economic growth in the long-run. Moreover, oil prices show a positive effect on economic growth both in the long and short run. It corroborates that the economic growth of Saudi Arabia is oil price dependent. The short-run effects of governance and control of corruption are found insignificant. Hence, a long period with good governance is required to support the economic growth of the Kingdom. So, it is recommended that the quality of governance should be enhanced to support economic growth.Keywords: Control of corruption, governance, economic growth, oil prices JEL Classifications: P16, O43, O13DOI: https://doi.org/10.32479/ijeep.11181

Downloads

Download data is not yet available.

Downloads

Published

2021-06-08

How to Cite

Mahmood, H. (2021). Oil Prices, Control of Corruption, Governance, and Economic Growth Nexus in Saudi Arabia. International Journal of Energy Economics and Policy, 11(4), 91–96. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/11181

Issue

Vol. 11 No. 4 (2021)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.