Abstract :The ability of economic policy makers to correctly identify the relationship between the effects of external variables on macroeconomic indicators and macroeconomic indicators is an important contribution to achieving such stability. Kazakhstan is significantly affected by increases and decreases in oil prices, in terms of a petroleum exporting country and the economy is highly dependent on oil and its derivatives, from both trade and tax revenues. In this framework, it is important to know how and to what extent changes in crude oil prices affect macroeconomic activity. In this study, the effect of oil prices on macroeconomic variables (inflation, industrial pro- duction index, real effective exchange rate and interest rate) of Kazakhstan was analyzed for the period of January 2000 - February 2017 using the VAR model. As a result of em- pirical analysis, other macroeconomic variables except inflation are significantly affected by oil prices. Keywords : Oil Prices, Kazakhstan, Macroeconomic Variables, VAR Analysis
