The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study

<pre>By using time-series data in respect of the period from 1985 to 2019, this study aims to compare how the changes in Yearly Oil Prices (YOP) affect both Saudi Arabia’s and Algeria’s military expenditure. This study applies the Vector Error Correction Model (VECM) to measure the relationshi...

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Autores principales:	Mohamed Noureldin Sayed, Ghada H. Ashour, Nesrin A. Abbas
Formato:	article
Lenguaje:	EN
Publicado:	EconJournals 2021
Materias:	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
Acceso en línea:	https://doaj.org/article/0de9eec56d68418d8c06d34310ed5dbe
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spelling	oai:doaj.org-article:0de9eec56d68418d8c06d34310ed5dbe2021-11-12T07:27:31ZThe Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study2146-4553https://doaj.org/article/0de9eec56d68418d8c06d34310ed5dbe2021-11-01T00:00:00Zhttps://econjournals.com/index.php/ijeep/article/view/11693https://doaj.org/toc/2146-4553<pre>By using time-series data in respect of the period from 1985 to 2019, this study aims to compare how the changes in Yearly Oil Prices (YOP) affect both Saudi Arabia’s and Algeria’s military expenditure. This study applies the Vector Error Correction Model (VECM) to measure the relationships between the variables. On the one hand, this study’s findings indicate that changes in YOP have had a great causal impact on both countries’ military expenditure, On the other hand, the link to Growth Fixed Capital (GFC) has had an insignificant effect on Saudi Arabia’s military expenditure. However, in the case of Algeria, the causal effect has been significant but, nevertheless, at a particularly low level (α = 10%). In conclusion, the two countries should pay closer attention to the dominant YOP when formulating their policies to maintain their much-needed security systems and protection umbrellas.</pre><p class="Default"><strong> K</strong><span style="font-size: 2em;"><strong>eywords:</strong> Military expenditure; Gross Fixed Capital; Yearly Oil Price; Vector Error Correction Model; Saudi Arabia; Algeria.</span></p><p><strong>JEL Classifications</strong>: Q4, Q48, Q43, Q430</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11693">https://doi.org/10.32479/ijeep.11693</a></p>Mohamed Noureldin SayedGhada H. AshourNesrin A. AbbasEconJournalsarticleEnvironmental sciencesGE1-350Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENInternational Journal of Energy Economics and Policy, Vol 11, Iss 6, Pp 180-190 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
spellingShingle	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5 Mohamed Noureldin Sayed Ghada H. Ashour Nesrin A. Abbas The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
description	<pre>By using time-series data in respect of the period from 1985 to 2019, this study aims to compare how the changes in Yearly Oil Prices (YOP) affect both Saudi Arabia’s and Algeria’s military expenditure. This study applies the Vector Error Correction Model (VECM) to measure the relationships between the variables. On the one hand, this study’s findings indicate that changes in YOP have had a great causal impact on both countries’ military expenditure, On the other hand, the link to Growth Fixed Capital (GFC) has had an insignificant effect on Saudi Arabia’s military expenditure. However, in the case of Algeria, the causal effect has been significant but, nevertheless, at a particularly low level (α = 10%). In conclusion, the two countries should pay closer attention to the dominant YOP when formulating their policies to maintain their much-needed security systems and protection umbrellas.</pre><p class="Default"><strong> K</strong><span style="font-size: 2em;"><strong>eywords:</strong> Military expenditure; Gross Fixed Capital; Yearly Oil Price; Vector Error Correction Model; Saudi Arabia; Algeria.</span></p><p><strong>JEL Classifications</strong>: Q4, Q48, Q43, Q430</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11693">https://doi.org/10.32479/ijeep.11693</a></p>
format	article
author	Mohamed Noureldin Sayed Ghada H. Ashour Nesrin A. Abbas
author_facet	Mohamed Noureldin Sayed Ghada H. Ashour Nesrin A. Abbas
author_sort	Mohamed Noureldin Sayed
title	The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
title_short	The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
title_full	The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
title_fullStr	The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
title_full_unstemmed	The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study
title_sort	impact of the volatility in oil prices on saudi arabia’s and algeria’s military expenditure: a comparative study
publisher	EconJournals
publishDate	2021
url	https://doaj.org/article/0de9eec56d68418d8c06d34310ed5dbe
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The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study

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