Role of Oil Prices and Major Macroeconomic Factors in the Economic Growth of Selected G20 Countries

The research is focused on investigating the influence of oil price fluctuation and different selected macroeconomic indicators on the economic growth of selected G20 countries. The research simply applied descriptive analysis technique as well as regression analysis technique by using a random effect model and Pearson correlation analysis technique to investigate formulated objectives. Results of the research suggested that oil prices and GDP in selected G20 countries have a negative relationship with each other. Results of the research further suggested that the broad money, balance of payment and inflation have a negative impact on the exchange rate of selected G20 countries. These results suggest that it is important for selected G20 countries to make sure to decrease the oil rents and maintain oil prices to have overall positive impact on the economy. Overall, results of the research suggest that a decrease in oil prices can be a significant factor for having a positive influence on the economic growth and progress of selected G20 countries.