Financial Development and Economic Growth: Empirical Evidence from Saudi Arabia

The aim of this study is to analyze the relationship between financial development and economic growth in Saudi Arabia over the period 1990-2022).The integration results depict the existence of a long-term equilibrium relationship between financial development and economic growth.The findings of the study confirm strong positive and statistically significant relationship between financial development and economic growth in Saudi Arabia.Our regression result indicates that broad money is key factor of economic growth in Saudi Arabia.In addition, domestic credit to the private sector stimulates economic growth.The study recommends efficient financial and sound macroeconomic policies.