Abstract:
Saudi Arabia's economy is linked to the revenues of the oil sector, as the main supplier of financing the general budget, as the requirements for economic development increased and diversified in light of the global economic and technological development, the role of the government in economic activity increased, thus increasing the volume of government spending, especially with the diversity of its areas, trends and allocations at great rates over the past four decades, thus reflecting the state's financial activity through public spending, which has been associated with the extent of the capacity of The Saudi government in obtaining public revenues, especially oil revenues. The rise in oil prices for many years has enabled the Saudi economy to raise the rates of economic growth, resulting in a clear improvement in the performance and effectiveness of many sectors and economic and social variables. Accordingly, the research seeks to show the impact of oil revenues and current spending on the volume of government investment spending based on the premise that government investment spending allocations are significantly affected by fluctuations in oil revenues, as well as the impact of current spending on investment spending allocations because investment spending is very flexible and has a greater and faster response to changes in government spending capacity than current spending, which is rising at a rapid pace as oil revenues increase and are difficult to reduce. With lower public revenues, the time (1980-2020) was adopted as a period during which political and economic events and transformations took place and oil prices experienced numerous fluctuations. For this purpose, the model was measured and estimated within the framework of the Johansen Methodology for Joint Integration using Eviews 12, which demonstrated a common integration relationship between research variables during the long and short period of time research, and the research through its analytical and standard effects indicated the causal relationship between oil revenues and current and investment spending, to complete the research with a set of conclusions and recommendations that would serve the research and confirm its hypothesis.
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