Saudi Cultural Missions Theses & Dissertations
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Item Restricted THE IMPACT OF LIQUIDITY CREATION ON ECONOMIC GROWTH, VOLATILITY, AND ASSESSING ITS CYCLICALITY IN MENA COUNTRIES(University Putra Malaysia, 2023-09-20) Almeshari, Ali Abdulrahman A; Haji Yahya, Mohamed Hisham bin DatoThis thesis examines the impact of liquidity creation (LC) on economic growth (EG) and growth volatility (GV). It assesses its cyclicality in the Middle East and North Africa (MENA) region. LC is a core function of the banking system, and it is essential for economic growth and economic stability. However, the theoretical claim of the role and the effect of LC seems to be neglected in the literature, specifically in the context of developing countries. Studying the impact of LC on EG and GV in the context of MENA is crucial due to the region’s underdeveloped financial system and sensitivity to external shocks. Policymakers can use this knowledge to improve understanding and develop more effective monetary and financial policies. Based on this background, this study examines the impact of LC on EG and GV. Besides, it evaluates the moderating role of LC on the relationship between real shock and GV. It also examines the cyclicality of a core function of the banking sector. According to Berger and Bouwman’s (2009) LC measurement, to calculate the main independent variable, i.e., LC, the study includes 184 commercial banks listed in the capital market of 10 MENA countries. The first objective of this thesis is to revisit the relationship between LC and EG in a panel of 20 MENA countries over the 2000-2019 period. Using pooled mean group estimations in a dynamic heterogeneous panel setting, this study shows that LC positively affects EG in the long run. However, the short-term effects were inconsistent due to banking fluctuations and crises in the sector, which cancelled out the positive impact of LC. The study’s findings align with previous research, which showed that LC positively impacts EG. Thus, LC could be a beneficial tool that can be used to promote EG. Secondly, the study uses a panel cointegration estimating approach to discover the relationship between LC and GV. It evaluates the moderating effect of LC on the linkage between real shock, proxied by oil terms of trade volatility and GV. The study finds that LC significantly reduces GV in both the short and long run. The study also finds that both real and monetary shocks are the main sources of volatility and that LC helps to reduce the effect of real shocks and amplifies the effects of monetary shocks on GV. The study suggests that strengthening the banking industry through LC could be an essential strategy for avoiding economic swings and absorbing real shocks. Finally, the study examines whether bank LC in the MENA region is procyclical and finds no research addresses whether it can exacerbate business cycle fluctuations. However, the study confirms that it is widely known that the supply of bank liquidity is closely associated with economic changes, which is referred to as procyclicality. There are several implications of the present study for future research and policymaking. It sheds light on how one of the primary banking operations affects economic development directly and indirectly and how it reacts to genuine shocks.11 0Item Restricted The Relationship between Environmental Preservation Initiatives and National Economic Growth in Saudi Arabia(Saudi Digital Library, 2023-11-23) Alhumaidi, Sarah; Chen, LouisaThis study investigates the relationship between economic growth and environmental quality represented by renewable energy development initiatives in Saudi Arabia and Sweden. While Saudi Arabia is among the world's top oil producers and consumers, Sweden is a leading force in the global transition into renewable energies. The employment of the Cobb-Douglas production function and generalised method of moments further helped us to identify input factors that determine the two countries' revenues, namely capital, labour, and energy consumption, thus enabling us to determine each factor's significance level. That said, this study found that the two variables influence each other, implying that their transition into renewable energies correlates with their GDP growth, and vice versa.9 0Item Restricted THE ROLES OF INTENSIVE AND EXTENSIVE EXPORT DIVERSIFICATION ON ECONOMIC GROWTH AND FEMALE LABOR FORCE PARTICIPATION(2023-04-06) Binmahfuth, Wafa Naif; Morshed, MahbubThis dissertation is divided into three chapters, and each focuses on export diversification, a crucial economic issue, particularly for emerging nations. In the first chapter, we examine the role of intensive and extensive export diversification in the macroeconomy, and thus we analyze the effects of different forms of export diversification on economic growth, growth volatility, and export volatility. We use cross-section and time series techniques for our panel data set from 118 countries for the period 1970 to 2019. We analyzed the impact and nature of the relationship between export diversification and economic growth by employing the system Generalized Method of Moments (GMM) estimation technique and export diversification measured by the Theil index, and we find that export diversification has a positive and significant effect on economic growth. In the second chapter, we examine the effects of export diversification on female labor force participation (FLFP) using data from 118 countries over the period (1990-2019). We also focus on what type of export diversification increases employment opportunities for women in developing and emerging economies. We find that the introduction of new products in the export basket (extensive export diversification) imparts stronger effects on female labor force participation. In the third chapter, we examine the macroeconomic performances of the KSA and the UAE focusing on the roles of export diversification. It is observed that the UAE made significant progress in diversifying its export basket compared to that of the KSA. Even during the 1990s, these two-dominant oil-producing countries were very close in terms of export concentration. The two countries are geographically and historically similar, but the UAE moved in a different direction in diversifying its economy in 2000 while the KSA has recently taken steps to promote export diversification in order to achieve stable economic growth. This suggests that a comparison of KSA and UAE growth performance over the 1990-2019 period would inform us about the growth and export diversification relationship. We find that the KSA can benefit more from the introduction of more goods/services to its export basket than the UAE.38 0