FINANCING OF HIGHER EDUCATION IN SAUDI ARABIA: AN ARDL MODEL

Abstract

This paper explores the connection between finance or government spending and higher education in Saudi Arabia. The main objective was to distinguish between the short-term and long-term effects of financing on higher education. This paper was based on secondary time series data from 2000 to 2021. The present study used econometric tools i.e, ADF and PP to assess stationarity, while ARDL and Bound tests were used to examine short- and long-term relationships. The findings indicate a positive and significant impact of public expenditure on higher education in Saudi Arabia. The study recommends that strategic investments in Saudi higher education will focus on quality education, research, faculty, and technology. The study also recommends that transparency, involvement from the private sector, scholarship programs, and flexible policies are necessary for the efficient growth of the country.