Fiscal Policy and Economic Cycles in Oil-Exporting Countries

Author/Editor:

Kamilya Tazhibayeva ; Aasim M. Husain ; Anna Ter-Martirosyan

Publication Date:

November 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 08/253

Subject:

English

Publication Date:

November 1, 2008

ISBN/ISSN:

9781451871111/1018-5941

Stock No:

WPIEA2008253

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

21

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