Abstract: Since the economic crisis started in 2007, many developing and developed countries have suffered severely. This paper empirically examines the impact of the current financial crisis on Saudi Arabia, which has been chosen as the sample because of its important role as the world’s largest oil exporter. The hypothesis is that although the financial crisis has significantly affected developing countries, this does not include Saudi Arabia. The paper applies regression technique with real GDP for Saudi Arabia as dependent variable, whilst US real growth, real oil price and VIX Index are taken as independent variables. Prior to regression analysis, all the variables are tested for Stationarity applying Augmented Dickey- Fuller test. The results show that although Saudi growth was affected by the financial crisis, the sharp increase in oil prices helped the country through this period of crisis.
Title: The Impact of the Recent Financial Crisis on the Economic Growth of Saudi Arabia
Author: Ayman Adham
International Journal of Social Science and Humanities Research
ISSN 2348-3164 (online), ISSN 2348-3156 (Print)
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