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Oil prices and fiscal policy in an oil-exporter country: empirical evidence from Oman
Citation
Al Jabri, S and Raghavan, M and Vespignani, J, Oil prices and fiscal policy in an oil-exporter country: empirical evidence from Oman, Energy Economics:, 111 Article 106103. ISSN 0140-9883 (2022) [Refereed Article]
Copyright Statement
© 2022 Elsevier B.V. All rights reserved
DOI: doi:10.1016/j.eneco.2022.106103
Abstract
This paper studies the impact of oil price shocks on fiscal policy and real GDP in Oman using new unexplored data. We find that an oil price shock explains around 22% and 46% of the government revenue and GDP variation, respectively. Decomposing the government revenue and GDP further into petroleum and non-petroleum related components, we find that an oil price shock explains around 26% of the variation in petroleum revenue and 90% of the petroleum-GDP. Though petroleum and non-petroleum GDP respond positively to oil price shocks, government expenditure is not directly affected by oil prices but is affected by government revenue. The results suggest that the Omani government uses its reserve fund and local and international debt to smooth and reduce the impact of oil price fluctuations.
Item Details
| Item Type: | Refereed Article |
|---|---|
| Keywords: | oil price shocks, fiscal policy, GDP, SVAR |
| Research Division: | Economics |
| Research Group: | Applied economics |
| Research Field: | Behavioural economics |
| Objective Division: | Economic Framework |
| Objective Group: | Macroeconomics |
| Objective Field: | Balance of payments |
| UTAS Author: | Al Jabri, S (Dr Salwa Al Jabri) |
| UTAS Author: | Raghavan, M (Dr Mala Raghavan) |
| UTAS Author: | Vespignani, J (Associate Professor Joaquin Vespignani) |
| ID Code: | 150289 |
| Year Published: | 2022 |
| Deposited By: | Finance |
| Deposited On: | 2022-06-06 |
| Last Modified: | 2023-01-06 |
| Downloads: | 0 |
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