Fiscal Policy and Economic Cycles in Oil-Exporting Countries

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Fiscal Policy and Economic Cycles in Oil-Exporting Countries

Author Info

Kamilya Tazhibayeva
Anna Ter-Martirosyan
Aasim M. Husain

Abstract

This paper empirically assesses the impact of oil price shocks on the underlying non-oil economic cycle in oil-exporting countries. Panel VAR analysis and the associated impulse responses indicate that in countries where the oil sector is large in relation to the economy, oil price changes affect the economic cycle only through their impact on fiscal policy. Once fiscal policy changes are removed, oil price shocks do not have a significant independent effect on the economic cycle.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/253.

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Length: 21 pages
Date of creation: 07 Nov 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/253

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This paper has been announced in the following NEP Reports:

NEP-AFR-2008-12-01 (Africa)
NEP-ALL-2008-12-01 (All new papers)
NEP-CBA-2008-12-01 (Central Banking)
NEP-ENE-2008-12-01 (Energy Economics)
NEP-MAC-2008-12-01 (Macroeconomics)
NEP-OPM-2008-12-01 (Open MacroEconomics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Other versions:
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Other versions:
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Other versions:
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Other versions:
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Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Rabah Arezki & Ali Alichi, 2009. "An Alternative Explanation for the Resource Curse: The Income Effect Channel," IMF Working Papers 09/112, International Monetary Fund. [Downloadable!]
Other versions:
- Arezki, Rabah & Alichi, Ali, 2009. "An Alternative Explanation for the Resource Curse: The Income Effect Channel," MPRA Paper 17130, University Library of Munich, Germany. [Downloadable!]

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