BLACK GOLD & FLUCTUATION : A CRONIC EFFECT ANALYSIS ON OIL IMPORTER & EXPORTER ECONOMIES 1973-2009

This paper studies the macro-economic dynamics in oil exporting economies and oil importing economies using Panel VAR approach. This learning in divergent with the majority other researches which center of attention is only developing net oil exporters ?instead of importers and exporters economies and in accumulation to explore macro-economic fluctuations, formulate accessible fresh approaching into the collision of oil shocks on macroeconomic variables. Instability on the supply side of the oil market give explanation the largest part of the observed oil price unpredictability and are mainly caused and effect on the oil exporting economies. The oil shocks are due to demand and supply desired difference by the developing economies and developed economies. These shocks also negative effect oil importing economies (Pakistan, India & Bangladesh) GDP meanwhile these shocks also create impact and un-stability on oil exporting economies (Kuwait, Iran and Saudia) GDP.