Causal Relationships in Economic Growth: The Case of Saudi Arabia

The importance of public sector activities have grown significantly over the last few decades in Saudi Arabia. It is argued that such involvement often impacts economic growth significantly. In this regard, different economic perspectives emphasise the role of the public sector in transforming the economy and enhancing economic growth. Nevertheless, it is projected that such intervention may point the way to increasing dependence on the government in planning and providing infrastructure projects, which in turn leads to an increase in public expenditure size and activities.