Abstract

The paper focuses on the main determinants of private investment in the Kingdom of Saudi Arabia (KSA) during the period 1986-2016. It uses the Autoregressive Distributed Lag (ARDL) model to estimate a long run (equilibrium) and a short run relationship between private investment and its economic determinants as financing resources availability, aggregate demand size. public investment, a corruption index is also added. Results showed the existence of a long run equilibrium between the dependent variable and income per capita. credit bank to the private sector and the public investment. However, the coefficient of corruption index is significant only in the short run. The study confirms also the existence of the crowding out effect of public investment on private one.