Oil Prices and Fiscal Policy in an Oil-Exporter Country: Empirical Evidence from Oman
| Autor: | Joaquin L. Vespignani, Mala Raghavan, Salwa Aljabri |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Government History Polymers and Plastics Monetary economics External debt Industrial and Manufacturing Engineering Fiscal policy chemistry.chemical_compound Shock (economics) General Energy chemistry Real gross domestic product Government revenue Economics Petroleum Revenue Business and International Management |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| Popis: | 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 variation in the government revenue and GDP, 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 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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