The role of oil in shaping the features and characteristics of the Libyan economy

Abstract

The main aim of this study was to investigate the role of Oil-Gas sector in the process of formation of the Libyan economy’s features, starting with the period of sixties in which the most significant aspects of this economy were constituted. Furthermore, the study aimed to illustrate the efforts that has been done by the government, dealing with this attributes, and then, to represent the current characteristics of this economy.In order to achieve the study objectives, a descriptive analytical approach was used.According to the main findings of the study, it can be clearly seen that Oil-Gas sector is still playing the major role in the Libyan economy, that can be explained by its high contribution in GDP, Exports, and the public expenditure.The study recommendations indicated to the importance of the: structural diversification of the income sources, developing the services sector, investing the economic regional integration agreements. It recommended that the role of the government in the economic activity in Libya should be redefined as well.