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Theory says that prudential fiscal policies can mitigate the unintended consequences of business cycles. Does evidence support the effectiveness of fiscal policies is still a challenging question. In this thesis, I focus on the relationship between fiscal policies and aggregate movements in oil producing countries. I found significant pro-cyclicality in these countries in which questions the goal of their policy making. Furthermore, I show that in my sample of oil producers,data doesn’t support the poorer is the country, the higher is the pro-cyclicality of their fiscal policies