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

Davood Danesh Jafari, Hamid Nazemian, Javid Bahrami, Mohammad Hassan Kheiravar
International Journal of Economics and Business Administration, Volume IX, Issue 2, 3-21, 2021
DOI: 10.35808/ijeba/685


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.

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