Analysis of Oil Price Effect on Economic Growth of ASEAN Net Oil Exporters

Kriskkumar, Karunanithi; Naseem, Niaz Ahmad Mohd

doi:10.3390/en12173343

Cited by 20 publications

(18 citation statements)

References 55 publications

(90 reference statements)

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“…When the oil price increases, it affects economic growth positively, however, when the oil price drops, it will affect economic growth negatively and it also returns back to normal equilibrium. Our findings are contradict to the work of Izraf et al (2015) and Kriskkumar and Naseem (2019). This is not surprising as different approach had been used in these studies.…”

Section: Asymmetric Error-correction Modellingcontrasting

confidence: 99%

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Asymmetric Pass-Through Effects of Oil Price on Economic Growth in Malaysia

Bala

Lee

Maijama’a³

2021

IJBS

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This empirical analysis intends to examine the asymmetric response of economic growth when the oil price changes in Malaysia by applying threshold autoregressive (TAR) and momentum threshold autoregressive (MTAR) cointegration and asymmetric adjustment models. The results revealed that the oil price has an asymmetric impact on Malaysian economic growth. We found that when oil price increases this accelerates economic growth; however, the speeds of adjustment back to the steady position were insignificant. When the oil price dropped, oil price significantly and negatively affects economic growth for a period of time and then returns back to its normal position. The results revealed that Malaysian economic growth constantly benefits when the oil price increases and is temporarily negatively affected when oil prices drop. The results have important policy implications. This suggests that it is essential to the policy makers to consider different policy responses for hikes and drops in oil prices. The result implies that negative oil price shock would lower economic growth, however it is temporary. Therefore, policy makers might response by implementing expansionary monetary policy to stimulate economic growth. The explanation is intuitive. For example, an increase in the money supply would normally pull down the interest rate which would further encourage consumption and investment, stimulate economic growth, which would increase oil demand and push up its price.

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Section: Asymmetric Error-correction Modellingcontrasting

confidence: 99%

“…The impact of crude oil price on economic growth has drawn much attention from researchers. First oil price shock occurred during the year 1973, due to the OPEC embargo (Kriskkumar & Naseem, 2019). As a result, the crude oil price fluctuating about $12 to $14 per barrel.…”

Section: Introductionmentioning

confidence: 99%

Asymmetric Pass-Through Effects of Oil Price on Economic Growth in Malaysia

Bala

Lee

Maijama’a³

2021

IJBS

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“…Therefore, the NARDL approach of Shin et al [69], used to assess the dynamic association between absorptive capacity, and per capita, CO 2 emissions and GDP in the USA and China is followed herein. The NARDL model provides superior advantages to eliminate serial correlation and endogeneity effects and is competently able to identify the short-and long-term relationships of the nexus between the factors [59,70,71]; thus, one can adopt the NARDL, since it is the non-linear extension of the linear ARDL model [72].…”

Section: Empirical Approachmentioning

confidence: 99%

Does the Level of Absorptive Capacity Matter for Carbon Intensity? Evidence from the USA and China

et al. 2020

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Interest in the rapid growth of CO2 emissions, together with the economic performance of various countries continues to attract researchers and practitioners’ interest. Alongside, concerns regarding global warming and its effects on human and animal health, and thus sustainable development, escalate. The present study employs the nonlinear autoregressive distributed lag to identify short- and long-run dynamics and the asymmetric nexus between absorptive capacity, and CO2 emissions intensity from 1970 to 2018 in the case of the USA and China. In the short-run, an increase in technology transfer based on human resources increases CO2 emissions in China. Contrarily, the decrease in technology transfer based on infrastructure has an emissions-decreasing effect in China. In the long-run, the effects of an increase in absorptive capacity based on innovation and infrastructure developments provide positive and significant impetus to mitigate the carbon intensity in China and the USA. The results are robust using GHG intensity. Thus, policymakers and researchers have to consider the pivotal role of absorptive capacity in facilitating sustainable development.

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“…Another notion that emerged was that when the government does not adequately manage oil revenues, a shift of jobs from local activities to oil activities tends to occur due to the much higher wages associated with the latter. This, in turn, undermines local dynamics regarding cultural, social and political aspects, and becomes a drag on socioeconomic development [64]. Finally, it should be noted that some countries have managed to balance their economic growth through social welfare.…”

Section: Discussionmentioning

confidence: 99%

Economic and Social Impacts of the Oil Industry on the Brazilian Onshore

et al. 2020

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Oil wealth can foster social inequality if not properly managed. This is due to the migration of production factors from different economic activities to the oil sector. As a result, unemployment, poverty, political instability, a reduction in development, among other undesirable effects on society, may arise. With that in mind, this research evaluates the government’s role in the socioeconomic development of the oil producing municipalities in Rio Grande do Norte State (RN), the largest onshore producer in Brazil. The research uses panel regression as it allows broad analyses of the space and time dimensions to be performed. In addition, it relies on statistical testing at all stages to make the research analysis more appropriate and consistent. The proposed model revealed better socioeconomic development indicators in municipalities where the local Government made public savings as reserve funds. Furthermore, the results show that appropriate public savings management allows municipal governments to design public policies to provide future generations with socioeconomic benefits, in line with the purpose of royalties.

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Analysis of Oil Price Effect on Economic Growth of ASEAN Net Oil Exporters

Cited by 20 publications

References 55 publications

Asymmetric Pass-Through Effects of Oil Price on Economic Growth in Malaysia

Asymmetric Pass-Through Effects of Oil Price on Economic Growth in Malaysia

Does the Level of Absorptive Capacity Matter for Carbon Intensity? Evidence from the USA and China

Economic and Social Impacts of the Oil Industry on the Brazilian Onshore

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