Impact of Oil Price Shocks on Sudan's Government Budget

Authors

  • Elsiddig Rahma
  • Noel Perera Department of MCE, Faculty of Engineering and Environment, Northumbria University
  • Kian Tan

Abstract

There is well established literature on the negative relationship between oil price shocks and aggregate macroeconomic activities for developed economies. However, there is a paucity of similar empirical studies in developing countries. In this respect, Sudan is a prominent example. This paper attempts to address this gap by employing the Vector Auto-Regression model to explore the impact of oil price shocks on the main variables of the Sudan government budget using quarterly data for  the period 2000:q1-2011:q2. The empirical results suggest that oil price decreases significantly influences oil revenues, current expenditure and budget deficit. However, oil price increases do not Granger cause budget variables. Results from the impulse response functions and forecast error variance decomposition analysis suggest that oil price shocks have asymmetric effect on government budget.Keywords: VAR model, oil price shocks, SudanJEL Classifications: C320, Q430, O55

Downloads

Download data is not yet available.

Author Biography

Noel Perera, Department of MCE, Faculty of Engineering and Environment, Northumbria University

Department of Mechanical and Construction Engineering, Faculty of Engineering and Environement.Rank: Senior Lecturer

Downloads

Published

2016-04-17

How to Cite

Rahma, E., Perera, N., & Tan, K. (2016). Impact of Oil Price Shocks on Sudan’s Government Budget. International Journal of Energy Economics and Policy, 6(2), 243–248. Retrieved from https://econjournals.com/index.php/ijeep/article/view/1924

Issue

Vol. 6 No. 2 (2016)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.