Paper Title
Oil Prices and Canadian Economy

Abstract
The intense relationship investigated between international crude oil prices and its impact on macroeconomic variables of Canada by taking time series of monthly data applying VECM. The paper stated that there is the significant effect the growth of the economy along with the rate of inflation significantly and this impact is also symmetric. It investigated that there is a structural break in 2008 through structural stability test. Due to this break, the sample is divided into two sub-samples and applied VECM. The evidence shows that Canada’s GDP response positively to oil price variations but it is contrast to the given literature for oil exporting countries. Therefore it is suggested to test this model with non-linear combination. Keywords- Vector Autoregression Model, Crude oil price, linear combination, Canada, Growth.