Payame Noor University Economic Growth and Development Research 2228-5954 12 48 2022 09 23 Effect of Oil Revenue uncertainty Shocks on Instability of Certain Macroeconomic Variables in Selected Oil-Exporting Countries: A Panel VAR Approach Effect of Oil Revenue uncertainty Shocks on Instability of Certain Macroeconomic Variables in Selected Oil-Exporting Countries: A Panel VAR Approach 29 46 8185 10.30473/egdr.2021.59972.6271 FA Mohammad Hassan Kheiravar Ph.D. Student, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran Davood Danesh Jafari Professor, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran Hamid Nazeman Professor, Faculty of Economics, Allameh Tabata-ba'i University, Tehran, Iran Javid Bahrami Associate Professor, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran Journal Article 2021 08 06 In significant part of oil-exporting countries, oil revenues are considered as one of the main drivers of the economy. However, these revenues are volatile, uncertain and subject to shocks due to exogenous nature and inherent volatility of oil prices as well as the reality of the hydrocarbon resources’ depletion. On the other hand, oil revenues are independent of the domestic economy as they are mainly derived from exports. This indicate that a significant part of the economy in these countries is exposed to potential instability, depending on the way and quality of these revenues’ management. This article examines the effect of oil revenue shocks on volatility of five macroeconomic variables, i.e. economic growth rate, inflation rate, real exchange rate, liquidity and government size, using panel var from selected oil-exporting countries over the period 2000-2019. The results show that oil instability shocks led to increase in instability of government size, liquidity and exchange rate. In addition, it first increase instability of inflation rate and economic growth rate but subsequently decrease these tow variables’ instability. In significant part of oil-exporting countries, oil revenues are considered as one of the main drivers of the economy. However, these revenues are volatile, uncertain and subject to shocks due to exogenous nature and inherent volatility of oil prices as well as the reality of the hydrocarbon resources’ depletion. On the other hand, oil revenues are independent of the domestic economy as they are mainly derived from exports. This indicate that a significant part of the economy in these countries is exposed to potential instability, depending on the way and quality of these revenues’ management. This article examines the effect of oil revenue shocks on volatility of five macroeconomic variables, i.e. economic growth rate, inflation rate, real exchange rate, liquidity and government size, using panel var from selected oil-exporting countries over the period 2000-2019. The results show that oil instability shocks led to increase in instability of government size, liquidity and exchange rate. In addition, it first increase instability of inflation rate and economic growth rate but subsequently decrease these tow variables’ instability. https://egdr.journals.pnu.ac.ir/article_8185_04bc8774a7e8fcedb4214bd9117afaf0.pdf