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This working paper analyzes the impact of government spending on non-oil GDP in Oman, using other GCC countries as benchmarks and employing a Structural Vector Autoregression approach. The findings indicate that the average government expenditure multiplier is approximately 1.2, with higher multipliers for capital expenditure, particularly under positive oil demand shocks. The study emphasizes the importance of long-term investments for economic diversification in Oman, aligning with Vision 2040

Author

fj.firdawss

Language

EN