Disaggregated effect of construction investments on the Saudi economy: a dynamic computable general equilibrium model of Saudi Arabia

IF 6.9 1区经济学 Q1 BUSINESS, FINANCE Financial Innovation Pub Date : 2024-01-06 DOI:10.1186/s40854-023-00530-1

Irfan Ahmed, Khadija Mehrez, Claudio Socci, Stefano Deriu, Naif M. Mathkur, Ian P. Casasr

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Abstract

The role of the construction industry in economic growth has been widely discussed in the extant literature, but existing studies have not investigated the disaggregated impact of construction investments on the production and social sectors. This study examines the disaggregated effect of construction investments on the Saudi economy. The study uses a social accounting matrix of Saudi Arabia and constructs a dynamic computable general equilibrium model. The findings reveal that construction investments significantly boosted GDP and aggregate investments in the first two periods; however, the growth declined in the following three periods. This finding underlines the importance of long-term investments in the construction sector and calls for continuous monitoring and updating of the investment policy for sustainable development. This study also presents the disaggregated impact of investments on the value-added by each sector of the economy. The ranking of sectors exhibits that mining and quarry activities underwent a high increase in value-added, second to construction activities. Other economic activities also experienced growth in value-added and some of them changed their ranks within the five years.

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建筑投资对沙特经济的分类影响：沙特阿拉伯的动态可计算一般均衡模型

现有文献广泛讨论了建筑业在经济增长中的作用，但现有研究并未调查建筑投资对生产和社会部门的分类影响。本研究探讨了建筑投资对沙特经济的分类影响。研究使用了沙特阿拉伯的社会核算矩阵，并构建了一个动态可计算一般均衡模型。研究结果表明，在前两个时期，建筑投资极大地促进了国内生产总值和总投资的增长；然而，在随后的三个时期，增长速度有所下降。这一结论强调了建筑业长期投资的重要性，并呼吁持续监测和更新投资政策，以实现可持续发展。本研究还介绍了投资对各经济部门增加值的分类影响。各部门的排名显示，采矿和采石活动的附加值增幅较大，仅次于建筑活动。其他经济活动的增加值也有所增长，其中一些活动的排名在五年内发生了变化。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Financial Innovation Economics, Econometrics and Finance-Finance

CiteScore

11.40

自引率

11.90%

发文量

审稿时长

5 weeks

期刊介绍： Financial Innovation (FIN), a Springer OA journal sponsored by Southwestern University of Finance and Economics, serves as a global academic platform for sharing research findings in all aspects of financial innovation during the electronic business era. It facilitates interactions among researchers, policymakers, and practitioners, focusing on new financial instruments, technologies, markets, and institutions. Emphasizing emerging financial products enabled by disruptive technologies, FIN publishes high-quality academic and practical papers. The journal is peer-reviewed, indexed in SSCI, Scopus, Google Scholar, CNKI, CQVIP, and more.