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Exogenous oil shocks and the fiscal policy response in oil-exporting countries: evidence from Libya

Journal Article


Abstract


  • The downtrend in oil prices beginning in 2014 represents a challenge for smallopen developing and exporting economies like Libya. This stems from the

    importance of government revenue generated from the natural resource sector in

    financing government consumption and investment expenditures as well as capital

    imports. The dependency on the natural resource sector and a relatively weak

    non-natural-resource tax base renders fiscal positions highly challenging in oil

    exporting countries. As more than 90 percent of Libya's government revenue is

    generated from the oil sector, the budget components are the most influenced by oil-related shocks. Transitory oil price increases, especially after 2000, brought

Publication Date


  • 2017

Citation


  • Ali, I. & Harvie, C. (2017). Exogenous oil shocks and the fiscal policy response in oil-exporting countries: evidence from Libya. Journal of Energy and Development, 42 (1-2), 67-87.

Number Of Pages


  • 20

Start Page


  • 67

End Page


  • 87

Volume


  • 42

Issue


  • 1-2

Place Of Publication


  • United States

Abstract


  • The downtrend in oil prices beginning in 2014 represents a challenge for smallopen developing and exporting economies like Libya. This stems from the

    importance of government revenue generated from the natural resource sector in

    financing government consumption and investment expenditures as well as capital

    imports. The dependency on the natural resource sector and a relatively weak

    non-natural-resource tax base renders fiscal positions highly challenging in oil

    exporting countries. As more than 90 percent of Libya's government revenue is

    generated from the oil sector, the budget components are the most influenced by oil-related shocks. Transitory oil price increases, especially after 2000, brought

Publication Date


  • 2017

Citation


  • Ali, I. & Harvie, C. (2017). Exogenous oil shocks and the fiscal policy response in oil-exporting countries: evidence from Libya. Journal of Energy and Development, 42 (1-2), 67-87.

Number Of Pages


  • 20

Start Page


  • 67

End Page


  • 87

Volume


  • 42

Issue


  • 1-2

Place Of Publication


  • United States