Impact of oil price shocks on government operation in GCC countries for the period (2012-2019)
Keywords:
: Government spending - Oil price fluctuations – Oil revenues - Operating level.Abstract
The oil market witnesses sudden changes in the occurrence of a sharp drop in the international oil prices, and on different periods the annual rate of crude basket price (OPEC) retreated by a number of varied and overlapping factors. This negatively affects the performance of the governmental operation in the Gulf Cooperation Council countries that depend largely on the oil commodity and its revenues.
Search problem:The problem of research lies in revealing the huge financial pressures faced by producers that affect investments, production and changing the geopolitical situation in the Gulf Cooperation Council countries as a result of the volatility in oil prices.
The importance of research: The research is concerned with studying the impact of oil price fluctuations on the level of government employment in the GCC States.
Research objectives: The research aims at the impact of oil price fluctuations on the governance of the GCC countries during the period (2012-2019).
Research hypothesis: The research is based on two hypotheses: Oil price fluctuations have a direct impact on the government operation in the GCC countries; It showed that the rise of oil prices leads to the rise of the level of governmental operation of the Gulf Cooperation Council countries.
Research methodology: The researcher employed the descriptive approach to study the relationship between research variables and to track the analytical method of determining the impact of oil price fluctuations on the level of government operation.
Most notable findings: There is an indirect correlation between oil prices and the level of government operation, which is affected by the stages of the development of oil revenues in the GCC countries.
Recommendations :The GCC countries should intensify their efforts to allocate alternative allocations for oil dependence, to diversify sources of income, to develop productive sectors and to diversify investments to provide employment opportunities.
