English abstract
This research examines the effect on macroeconomic determinants on welfare and social
wellbeing in Oman. In this study the impacts of inflation, wages, unemployment and openness
of welfare - GDP per capita (current local currency)- in Oman are estimated using the Pearson
correlation coefficient to find the nature of the relationship between them. Gini index was
added to see if it has any impact on the welfare. The study showed that inflation, wages and
openness, with over 90% correlation, positively and directly affect welfare. Unemployment
showed a negative relationship with the same variables. The policymakers of the country
should put more priority on reducing the unemployment rate rather than on restraining
inflation, and give more freedom for international trade (which may create more jobs and lead
to an increase in wages).
