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Effect of Oil Revenues on Certain Macroeconomic Variables in Selected Oil-Exporting Countries: A Panel Data Approach

Author

Listed:
  • Davood Danesh Jafari
  • Hamid Nazemian
  • Javid Bahrami
  • Mohammad Hassan Kheiravar

Abstract

Purpose: This article examines the effect of oil revenues on four macroeconomic variables, including GDP per capita, inflation rate, real exchange rate, and liquidity in selected oil-exporting countries over the period 1980-2015. Design/Methodology/Approach: For this purpose, models are developed in the form of four scenarios and are estimated using panel data. Findings: The results show that oil revenues have a significant positive effect on the GDP per capita and volume of money, a significant negative effect on the real exchange rate and no significant impact on the inflation rate. Practical Implications: These findings provide a better understanding of how oil revenues affect the economy of oil-exporting countries and its channels. Originality/Value: This would help governments improve the quality of resource revenue management, targeting higher economic performance.

Suggested Citation

  • Davood Danesh Jafari & Hamid Nazemian & Javid Bahrami & Mohammad Hassan Kheiravar, 2021. "Effect of Oil Revenues on Certain Macroeconomic Variables in Selected Oil-Exporting Countries: A Panel Data Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 3-21.
    • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:3-21
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    References listed on IDEAS

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    More about this item

    Keywords

    Oil Revenues; macroeconomic variables; oil-exporting countries; panel data.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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