The effect of saving and capital expansion on financial and technological development in GCC countries

This study examined the effect of the relationship between saving and capital expansion on financial and technological development in three GCC countries using panel data from 1990 to 2019. The study used panel least squares, feasible general least squares, dynamic ordinary least squares and fully...

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Autor principal:	Faris Alshubiri
Formato:	article
Lenguaje:	EN
Publicado:	Vilnius Gediminas Technical University 2021
Materias:	capital expansion saving economic growth theory financial development technological development panel cointegration Economic growth, development, planning HD72-88 Business HF5001-6182
Acceso en línea:	https://doaj.org/article/cbaaf81ef7f94bc1aab205e0cfc764ff
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spelling	oai:doaj.org-article:cbaaf81ef7f94bc1aab205e0cfc764ff2021-11-15T16:03:37ZThe effect of saving and capital expansion on financial and technological development in GCC countries10.3846/tede.2021.157692029-49132029-4921https://doaj.org/article/cbaaf81ef7f94bc1aab205e0cfc764ff2021-11-01T00:00:00Zhttps://btp.vgtu.lt/index.php/TEDE/article/view/15769https://doaj.org/toc/2029-4913https://doaj.org/toc/2029-4921 This study examined the effect of the relationship between saving and capital expansion on financial and technological development in three GCC countries using panel data from 1990 to 2019. The study used panel least squares, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares used in the study. The findings showed that there was a significant positive long-run relationship between capital expansion and financial development and was a positive and insignificant long-run relationship between saving and financial development. Conversely, the study showed that there was a significant positive long-run relationship between saving and technological development. Meanwhile, there was a negative long-run relationship between capital expansion and technological development. Pairwise Granger causality test results showed that there was bidirectional causality between saving and financial development, a single causal direction from Adjusted net national income and financial development and a single causal direction from technological development and saving and Inflation, consumer prices. The main conclusions of the study were saving tends to support technological development, while investment tends to improve financial development. Therefore, GCC countries should formulate a long-term growth strategy in all sectors to determine their development requirements in light of the available resources. First published online 15 November 2021 Faris AlshubiriVilnius Gediminas Technical Universityarticlecapital expansionsavingeconomic growth theoryfinancial developmenttechnological developmentpanel cointegrationEconomic growth, development, planningHD72-88BusinessHF5001-6182ENTechnological and Economic Development of Economy (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	capital expansion saving economic growth theory financial development technological development panel cointegration Economic growth, development, planning HD72-88 Business HF5001-6182
spellingShingle	capital expansion saving economic growth theory financial development technological development panel cointegration Economic growth, development, planning HD72-88 Business HF5001-6182 Faris Alshubiri The effect of saving and capital expansion on financial and technological development in GCC countries
description	This study examined the effect of the relationship between saving and capital expansion on financial and technological development in three GCC countries using panel data from 1990 to 2019. The study used panel least squares, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares used in the study. The findings showed that there was a significant positive long-run relationship between capital expansion and financial development and was a positive and insignificant long-run relationship between saving and financial development. Conversely, the study showed that there was a significant positive long-run relationship between saving and technological development. Meanwhile, there was a negative long-run relationship between capital expansion and technological development. Pairwise Granger causality test results showed that there was bidirectional causality between saving and financial development, a single causal direction from Adjusted net national income and financial development and a single causal direction from technological development and saving and Inflation, consumer prices. The main conclusions of the study were saving tends to support technological development, while investment tends to improve financial development. Therefore, GCC countries should formulate a long-term growth strategy in all sectors to determine their development requirements in light of the available resources. First published online 15 November 2021
format	article
author	Faris Alshubiri
author_facet	Faris Alshubiri
author_sort	Faris Alshubiri
title	The effect of saving and capital expansion on financial and technological development in GCC countries
title_short	The effect of saving and capital expansion on financial and technological development in GCC countries
title_full	The effect of saving and capital expansion on financial and technological development in GCC countries
title_fullStr	The effect of saving and capital expansion on financial and technological development in GCC countries
title_full_unstemmed	The effect of saving and capital expansion on financial and technological development in GCC countries
title_sort	effect of saving and capital expansion on financial and technological development in gcc countries
publisher	Vilnius Gediminas Technical University
publishDate	2021
url	https://doaj.org/article/cbaaf81ef7f94bc1aab205e0cfc764ff
work_keys_str_mv	AT farisalshubiri theeffectofsavingandcapitalexpansiononfinancialandtechnologicaldevelopmentingcccountries AT farisalshubiri effectofsavingandcapitalexpansiononfinancialandtechnologicaldevelopmentingcccountries
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The effect of saving and capital expansion on financial and technological development in GCC countries

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