Oil and Infrastructure Expenditures

The country of Saudi Arabia has been generating increasingly more revenue from sales of crude oil in recent years. As a result, the country’s economy has been growing at a rapid pace. Some economists and researchers argue that the economy of Saudi Arabia has not been growing at the same pace as the growth in oil revenue. This study tried to explore the effect that greater oil revenue has been having on one sector of the economy which is infrastructure. The study explored the relationship between oil revenue and government expenditures on infrastructure during the period of 1983-2007. The study tried to find out if the increase in oil revenue was associated with a similar increase in government expenditures on infrastructure during the period of 1983 to 2007. The findings of this study suggested that the increase in oil revenue was not associated with a similar increase in government expenditures on infrastructure