The Impact of Bank Credit on National Gross Product An Evidence from Saudi Economy

(Osama Azmi Sallam)

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Abstract

Under Kingdom's vision 2030، which aims to increase productivity of Saudi economic sectors، it is very important to measure the products of these sectors and determine what factors affecting these products. This study aimed to measure the effect of Saudi Bank Credit on Saudi National Gross Product and/or the contributions of Saudi economic sectors to Saudi GDP. Data of bank credit، and national products of Saudi economic sectors was analyzed using multiple regression of time series to verify the effect of bank credit on national products of Saudi economic sectors. The study found partial effect of bank credit on national products of Saudi economic sectors، especially on energy and fundamental utilities sectors. This result indicated that most credits raised by economic sectors were used mainly in operational uses rather than investment ones. This result raised a question about efficiency of these economic sectors in using funds. The study recommended that bank credit should be well planned and some control should made to follow up the use of bank credit. Key Words: Bank Credit، Economic Sectors، Gross National Product.
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