Monetary model for a developing oil-exporting country: the case of Saudi Arabia

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:6112332

Algahtani, I M.S.

In this study, a model is developed that incorporates five behavioral equations. These equations attempt to explain the determinants of five important variables: the demand for money, the supply of money, the inflation rate, the balance of payments, and domestic government expenditures. One of the main contributions of this model is that it features the analysis of both the domestic money market and the change in international reserves, their interaction as well as the role of domestic government expenditures. The study progresses beyond developing a monetary model to introduce new determinants of some of the aforementioned variables. It is shown that apart from income and inflation rate, the Eurodollar deposit rate is a significant determinant of the demand for money. The growth of the stock of money and the change in the expected inflation rate are the most significant determinants of the inflation rates. Oil revenues and income from investment abroad significantly shape the behavior of the domestic government expenditures.

• Research Organization: Wisconsin Univ., Milwaukee (USA)
• OSTI ID: 6112332
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002* -- Energy Planning & Policy-- Petroleum
ASIA
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
GOVERNMENT POLICIES
INCOME
INFLATION
INVESTMENT
MATHEMATICAL MODELS
OIL-EXPORTING COUNTRIES
SAUDI ARABIA