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Modeling the Impact of the Oil Sector on the Economy of Sultanate of Oman

Author

Listed:
  • Nasser Al-Mawali

    (Department of Economics and Finance, College of Economics and Political Science, Sultan Qaboos University, Oman,)

  • Haslifah Mohamad Hasim

    (Department of Mathematical Sciences, University of Essex, United Kingdom,)

  • Khalil Al-Busaidi

    (National Center for Statistics and Information, Muscat, Oman)

Abstract

This study constructs and analyses a simple macroeconomic model that specifically tailored to model the impact of oil sector on the economy of Sultanate of Oman. The constructed model of the study measures the impact of oil sector on the Oman economy for the last three decades and also provides some forecasting for the major macroeconomics indicators related to the Oman economy. Model simulations indicate that the oil sector has large and positive impact on Oman gross domestic product and its influence spills over to all other non-oil sectors of Oman economy. The study found that largest influence of oil was on the gas sector and the least economic sector influenced by oil was agricultural sector. The findings of the study suggest that Oman economy is far from being diversified and that the proposed model helps the policy makers in Oman to identify and forecast the impact of oil on other components of the Oman economy

Suggested Citation

  • Nasser Al-Mawali & Haslifah Mohamad Hasim & Khalil Al-Busaidi, 2016. "Modeling the Impact of the Oil Sector on the Economy of Sultanate of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 120-127.
    • Handle: RePEc:eco:journ2:2016-01-17
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    References listed on IDEAS

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    Cited by:

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    2. Badreldin Mohamed Ahmed Abdulrahman, 2021. "Oil and Non-oil Export and its Impact on Economic Performance in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 88-92.
    3. José César Lenin Navarro Chávez & Odette Virginia Delfín Ortega & Enrique Guardado Ibarra, 2022. "Economic Efficiency of the Main Oil Producing Countries in Upstream Sector in the Period 2010-2017," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(2), pages 1-17, Abril - J.
    4. Eduardo Saucedo & Jorge González, 2019. "Efecto de los precios del petróleo en la actividad económica sectorial de México. Análisis para el periodo 2002-2018," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(2), pages 221-243, Abril-Jun.
    5. Dmitry Burakov, 2017. "Oil Prices, Economic Growth and Emigration: An Empirical Study of Transmission Channel," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 90-98.
    6. Ahmad Al Humssi & Maria Petrovskaya & Milana Abueva, 2022. "Modelling the Impact of World Oil Prices and the Mining and Quarrying Sector on the United Arab Emirates’ GDP," Mathematics, MDPI, vol. 11(1), pages 1-22, December.
    7. Omer Ali Ibrahim & Sonal Devesh & Hisham Mohamed Hassan, 2019. "Sensitivity of Fiscal Balances to Oil Price Shocks: Short and Long Term Effects in the Context of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 146-155.
    8. Ifeoma Christy Mba & Emmanuel Ikechukwu Mba & Jonathan Emenike Ogbuabor & Winnie Ogochukwu Arazu, 2019. "Causes and Terrain of Oil Spillage in Niger Delta Region of Nigeria: The Analysis of Variance Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 283-287.

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    More about this item

    Keywords

    Macroeconomic Modeling; Oil; Oman;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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