Paper Title
The Theory of Ricardian Equivalence Applied to Oil-Arab Exporting Economies (2003-2012)

The validity of the Ricardian equivalence proposal remains controversial despite numerous empirical studies. This study used the DOLS approach to examine evidence from the Ricardian Equivalence Hypothesis in seven oil-rich Arab countries, namely Algeria, Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates during the period 2003-2012. The results show that GDP per capita and government expenditure have a positive effect on private consumption, while government debt has a negative impact on private consumption. From the point of view of this study, the proposition of Ricardian equivalence, which affirms that private consumption remains unchanged, independently of government expenditures, does not apply to the countries in question. On the contrary, the Ricardian Equivalence Hypothesis was accepted since the government debt coefficient had negative and statistically significant impact on private consumption. therefore, the results revealed that individuals in these countries obtain Ricardian characteristics. Keywords - Panel-Cointegration, Ricardian Equivalence, Government Debt, Government Spending,