THE CONTRIBUTION OF FISCAL ORDINARY TO ACHIEVING ECONOMIC GROWTH IN ARAB-OIL COUNTRIES UNDER THE FLUCTUATIONS OF OIL PRICES DURING THE PERIOD (1990-2019)

Abstract

This study aims to identify the extent of the fiscal ordinary to achieving economic growth in the Arab-oil countries represented in Algeria, the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Iraq, and Libya during the period 1990-2019. By using the Principal Components Analysis method (ACP) and the Generalized Least Squares method (EGLS), and taking the GDP per capita as a dependent variable, the Fiscal Ordinary revenues as a percentage of the total public revenues as the main independent variable as well as other independents variables. The study found that the repeated oil shocks that the sample countries were exposed to, during the study period, required them to implement many reforms to their fiscal structures to ensure the sustainability of public revenues outside the petroleum fiscal, which allowed them to collect additional public revenues. These reforms enabled them to ensure the continuity of public spending, which had a positive impact on the economic growth of these countries. The study recommended that Arab oil countries continue to reform their fiscal structures and expand their fiscal bases in order to ensure long-term financial resources and economic growth independent of oil price fluctuations.