Relationship between oil revenues and oman's macroeconomic performance indicators: An empirical investigation Ms. Aslam Neelufer1, Dr. Shastri Swati2 1Assistant Professor, Department of Management, Waljat College of Applied Sciences, Muscat, Sultanate of Oman. neelufer.aslam@gmail.com 2Associate Professor, Department of Economics, Banasthali Vidyapith, Rajasthan, India. swatishastri21@gmail.com Online published on 10 September, 2019. Abstract Ever since the discovery and commercial production of oil, oil revenues have played an important role in the economy of Sultanate of Oman. In 2018, oil revenues constituted 73% of the total revenues (Oman Statistical Yearbook, 2018). This study empirically examines the long run and short run relationship between oil revenues and selected macro-economic performance indicators from 1985 to 2017 using the Auto Regressive Distributed Lag Approach. The macroeconomic performance indicators are Real GDP at 2010 prices, Real OMR USD exchange rate, real fiscal deficit as proportion to GDP and Inflation. Long relationship between the macroeconomic performance indicators and oil revenues was inferred through the long run form and bounds test. The reversion to long run equilibrium occurs at an adjustment speed of 73%. In the short run, a bi direction causality between the macro-economic performance indicators and oil revenues was inferred. Top Keywords ARDL, Inflation, Real GDP, Real Exchange Rate, Real Fiscal deficit, Real Oil Revenues, Sultanate of Oman. Top |