Human Capital Investment and Economic Growth in Saudi Arabia: Error Correction Model


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Authors

  • Abla A.H. Bokhari

Abstract

To examine the relationship between investment in human capital and economic growth in the Kingdom of Saudi Arabia for the period 1970-2014. Quantitative research design has been implemented. Granger Causality approach has been employed, followed by error correction model. The data stationarity and integration order have been tested, using the Augmented Dickey-Fuller. Any long-run or short-run causality was not observed between expenditure on education and economic growth (per capita GDP). 73.6% variation has been indicated by fixed capital formation of GNP, which is considered as an effective aspect. The results indicated that results are statistically significant with p-value (0.000) at 5% level of significance. Investment in human capital, with the right policy assessments and rehabilitation, can be translated into an essential element of growth in the Saudi economy.Keywords: Economic Growth, Human Capital, Error Correction modelJEL Classifications: G0, G10, G38

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Published

2017-07-27

How to Cite

Bokhari, A. A. (2017). Human Capital Investment and Economic Growth in Saudi Arabia: Error Correction Model. International Journal of Economics and Financial Issues, 7(4), 104–112. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/4895

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