The relationship between national saving and investment over the long termis examined for six GulfArab oil-exporting developing countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and theUnited Arab Emirates.We show that, provided some large outliers are properly accounted for, longrunequilibrium relationships between saving and investment (both total and fixed) exist in thesecountries. Because these countries have typically large current account surpluses, such relationshipscannot be explained by standard arguments. Our hypothesis is that the response of investment tosaving largely depends on domestic absorptive capacity.
The long-run relationship between savings and investment in oil-exporting developing countries: a case study of the Gulf Arab states / Syed Abul, Basher; Fachin, Stefano. - In: OPEC ENERGY REVIEW. - ISSN 1753-0229. - STAMPA. - 37:4(2013), pp. 429-446. [10.1111/opec.12006]
The long-run relationship between savings and investment in oil-exporting developing countries: a case study of the Gulf Arab states
FACHIN, Stefano
2013
Abstract
The relationship between national saving and investment over the long termis examined for six GulfArab oil-exporting developing countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and theUnited Arab Emirates.We show that, provided some large outliers are properly accounted for, longrunequilibrium relationships between saving and investment (both total and fixed) exist in thesecountries. Because these countries have typically large current account surpluses, such relationshipscannot be explained by standard arguments. Our hypothesis is that the response of investment tosaving largely depends on domestic absorptive capacity.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.