Abstract
The main objective of the study is to explore how to achieve economic growth and the role of oil in the oil countries’ economy. The practical necessity of the article is to learn how to effectively integrate oil revenues into the country's economy. At the same time, it is justified by the evidence that non-oil sector development and ultimately sustainable economic development can be achieved by injecting oil revenues into the economy efficiently and reasonably. Besides, at result of the study found that oil-rich countries for reaching long-term economic growth and sustainable economic development should be able to develop the non-oil sector and obtain economic diversification. Research work has been carried out on the basis of systematic analysis and methods. Scientific novelty of the research-modern features of oil revenues management and ways of its effective use were identified and in the result of research proposals were made. Keywords: diversification of the economy, non-oil sector development, oil revenues. JEL Classifications: E31, Q41, O11 DOI: https://doi.org/10.32479/ijeep.8921
Highlights
Modern oil market is featured in developing dynamics and it is related to the increase of consumption and world production
The persistence of this trend is considered risky to the country’s economy. From this point of view, social and economic development must be achieved through oil revenues in the long term, economic diversification should be carried out and budget revenues should be largely funded by taxes via the development of the non-oil sector
National economies of oil-rich countries depend mainly on crude oil exports. Some of this revenue is saved in sovereign wealth funds and the remaining revenue is transferred to the state budget to stimulate economic diversification and growth (Ghalayini, 2011, Jimenez and Sanchez 2005)
Summary
Modern oil market is featured in developing dynamics and it is related to the increase of consumption and world production. The persistence of this trend is considered risky to the country’s economy From this point of view, social and economic development must be achieved through oil revenues in the long term, economic diversification should be carried out and budget revenues should be largely funded by taxes via the development of the non-oil sector. Decisions related on them should be taken into account for avoiding a negative impact on the country’s economy (Vugar, 2011) Implementation of these measures will reduce the dependence of the state budget revenues on the dynamics of oil prices on the world market and in the long run fiscal stability will be ensured.
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