Open AccessExternal Economic Fluctuations and Domestic Savings: A Study of Selected Oil Countries
Author(s) -
Ahmed Hadi Salman,
Abeer Mohammed Jassim,
Mustafa Kamil Rasheed
Publication year - 2022
Publication title -
webology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.259
H-Index - 18
ISSN - 1735-188X
DOI - 10.14704/web/v19i1/web19346
Subject(s) - economics , revenue , investment (military) , fragility , order (exchange) , monetary economics , finance , chemistry , politics , political science , law
The oil-producing countries generally suffer from a disturbance in the level of domestic savings, arising from the instability of incomes linked to oil revenues. Therefore, this study aimed to know the impact of external economic fluctuations on the level of domestic savings, and five oil-producing countries were selected for the period (2005-2017). Problem statement is The Study problem lies in the following question: Is saving able to finance economies in oil countries, in light of external shocks?). Study hypothesis (The multiplicity of external shocks cracks domestic savings, as well as their fragility in oil countries in general, which is negatively reflected in the sustainability of savings in generating investment and production in the oil economies.). The study concluded that the low level of domestic saving against economic fluctuations makes the country weak in adjusting the economic environment to absorb the impact of economic fluctuations. The study recommended building domestic savings and stabilizing incomes in order to strengthen the channels of financing the national economy.