Impact of Oil Price and Shocks on Economic Growth of Pakistan: Multivariate Analysis (Sectoral Oil Consumption)

T, Nazir S Hameed

doi:10.4172/2151-6219.1000182

Cited by 2 publications

(3 citation statements)

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“…Similarly, Alley et al (2014) utilized GMM model to investigate the effect of oil price shocks on economic activities in Nigeria and concluded that oil price uncertainty reduces the level of economic activity in a small open oil-producing economy like Nigeria. Also, Nazir & Hameed (2015), investigated oil prices and GDP in Pakistan using data covering from 1972 to 2011 and concluded that oil prices affected real GDP negatively in the long run. Kiliçarslan & Dumrul (2017) conducted a similar study in Turkey and deployed SVAR analysis for the period from 2005Q1 to 2017Q2.…”

Section: Article In Press -Corrected Proofmentioning

confidence: 99%

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Oil Price Shocks and Macroeconomic Performance of the Nigerian Economy: A Structural Var Approach

Alenoghena

2020

FU Econ Org

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This study examines the effect of oil price shocks on the macroeconomic performance of the Nigerian economy covering the period from 1980 to 2018. The effect of oil price shocks is investigated on macroeconomic variables like output growth, inflation, interest rate, exchange rate and industrial production index using the structural vector autoregression (SVAR) approach. The results of the investigation reveal that oil price shocks have significantly and negatively affected economic growth and industrial output. Furthermore, while the results show that oil price shocks have a significant positive effect on inflation, the effect is also positive on interest rate and exchange rate, but it is not significant. The results of impulse response function show a negative effect on output growth, it is positive on inflation, but mild and indeterminate on industrial production, interest rate and exchange rate. Based on findings in this study, the Renaissance theory and the Dutch Disease theories of economic growth apply to the Nigerian economy. The policy recommendations include the isolation of the country’s real sector from the vagaries of oil price volatility and the pursue of economic diversification to reduce the over-dependence on oil.

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Section: Article In Press -Corrected Proofmentioning

confidence: 99%

“…Despite innovations around the world on alternative sources of energy, crude oil still represents the primary source of power in the world today (Nazir & Hameed, 2015). The role of energy in different sectors of a modern economy cannot be over-emphasized.…”

Section: Introductionmentioning

confidence: 99%

Oil Price Shocks and Macroeconomic Performance of the Nigerian Economy: A Structural Var Approach

Alenoghena

2020

FU Econ Org

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“…Volume 14 Issue 2, 2019 Nazir and Hameed (2015), had examined the effect of oil consumption on Pakistan's GDP by using annual data from 1972 to 2011. they used ADF and Johansen Maximum Likelihood method in the study. According to result the long run and dynamic relationship has not detected for industrial oil consumption and oil price variables for model has no short run impact on GDP.…”

Section: Turkish Studies -Economics Finance Politicsmentioning

confidence: 99%

How Oil Prices Impact the Economic Growth of Venezuela?

Beşer¹

2019

TurkishStudies

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Energy, which is one of the indispensable elements of economic and social development, is provided by fossil resources such as coal, and natural gas. The coal, the main energy source of the First Industrial Revolution, was replaced by oil from the end of the 19th century. Although consumption patterns have changed over time and new energy sources have emerged, oil has not lost its importance today. Oil prices are one of the most important indicators of economic performance in the world and the country. In the last 45 years, the world economy, which has faced oil shocks, has increased its sensitivity to oil prices. For this reason, studies investigating the effects of oil prices on macroeconomic data have started to take place frequently in the literature and analysts have gained gains in the literature with different methods and approaches. The aim of this study was to determine the effect of the changes in oil prices on economic growth in Venezuela for the period 1980-2014. The reason for the fact that this period used in the analysis is limited with 2014 is due to the inaccessibility of these data. Dickey-Fuller Unit Root Test and Philips-perron Unit Root Tests were used in this study. When the series were found to be stationary at the first level, Johansen Cointegration Test was performed. As a result of the analysis, it is seen that there is a cointegration relationship between the variables in the long term, whereas in the causality research, one-way causality relationship from oil prices to economic growth has been determined. Then Granger Causality analysis was used.

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Impact of Oil Price and Shocks on Economic Growth of Pakistan: Multivariate Analysis (Sectoral Oil Consumption)

Cited by 2 publications

References 40 publications

Oil Price Shocks and Macroeconomic Performance of the Nigerian Economy: A Structural Var Approach

Oil Price Shocks and Macroeconomic Performance of the Nigerian Economy: A Structural Var Approach

How Oil Prices Impact the Economic Growth of Venezuela?

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