The purpose of this research is to examine the effect of oil revenues on budget deficit in selected oil exporting countries. In this study, the budget deficit is defined as dependent variable. The considered explanatory variables are the oil revenues, Gross Domestic Production (GDP), and taxes, the data of which in the panel model are collected annually for nine countries during the period 1995 to 2011 from the IMF statistical center and the World Bank. Here we apply the Eviews software with the Ordinary Least Squares (OLS) method. The results from estimations of the model show that the influence of oil revenues on budget deficit is negative. Also, by considering the impact of oil revenues in Iran and Kuwait which are OPEC members, this variable is insignificant in other countries, and a higher explanation is achieved.

The purpose of this research is to examine the effect of oil revenues on budget deficit in selected oil exporting countries. In this study, the budget deficit is defined as dependent variable. The considered explanatory variables are the oil revenues, Gross Domestic Production (GDP), and taxes, t...