Relationship Between Crude Oil Prices And Economic Growth In Selected OPEC Countries

Ftiti, Zied; Guesmi, Khaled; Teulon, Frédèric; Chouachi, Slim

doi:10.19030/jabr.v32i1.9483

Cited by 82 publications

(59 citation statements)

References 20 publications

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“…Increase in oil prices will lower output, which lowers real wages due to the decline in demand for labor as a result of the decline in economic growth. A decline in economic growth is positively linked with less disposable income and consumption as well (Maeda 2008, Tang et al 2010, Ftiti et al 2016). …”

Section: The Model and Datamentioning

confidence: 99%

Dynamics of electricity consumption, oil price and economic growth: Global perspective

et al. 2017

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Abstract:This study uses the data from 157 countries from 1960 to 2014 to analyze the relationship between economic growth, electricity consumption, oil prices, capital, and labor. The economic growth of developing countries with industrial infrastructure has a more significant association with electricity consumption than oil prices. We use oil prices and electricity consumption jointly to study highly predictive observations for economic growth. The data are categorized by income, OECD and regional levels. The panel cointegration, long-run parameter estimation, and Pool Mean Group testsare used to analyze the cointegration and short-run and long-run relationships between the variables. The empirical results indicate the presence of cointegration between the variables. The presence of feedback effects between electricity consumption and economic growth, oil prices and economic growth is valid. These findings confirm that inspite of the oil prices, developing countries rely heavily on electricity consumption for economic growth. In the short run, growth and feedback effects suggest that more vigorous electricity policies should be implemented to attain sustainable economic growth for the long-term.

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Section: The Model and Datamentioning

confidence: 99%

Dynamics of electricity consumption, oil price and economic growth: Global perspective

et al. 2017

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“…However, the oil price shocks create undermine and uncertainty effective fiscal management of oil revenues. Ftiti et al (2016) the researcher studied the degree of interdependence between oil price shocks and economic growth for (United Arab Emirates, Kuwait, Saudi Arabia, and Venezuela) in OPEC during the period from 2000 to 2010. They used co-integration test, the researcher showed that oil price shock short-term and medium-term during the period of fluctuations in financial turmoil and the global business cycle impact on economic growth in Organization of the Petroleum Exporting Countries.…”

Section: Research Conductedmentioning

confidence: 99%

The Effects of Fluctuations of Oil Price on Economic Growth of Libya

Aimer

2016

Energy Economics Letters

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“…It aligns with the result in Rahma et al (2016). However, it contradicts Oriakhi and Iyoha (2013) who suggest a positive link between oil price volatility and deficit financing of its associated high government expenditure and Hamilton (1983) and Ftiti, Guesmi, Teulon, and Chouachi (2016) which show that high oil price lowers national income and thereby raises fiscal deficit. Note: *, **, *** 1%, 5%, 10% significance level.…”

Section: Ardl Regression Resultsmentioning

confidence: 75%

Persistence of fiscal deficits in Nigeria: examining the issues

Okoye

Omankhanlen

Okorie

et al. 2019

Investment Management and Financial Innovations

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Due to a huge financing gap in many developing nations, governments use budget deficit to facilitate growth and development. However, deficit financing deepens the economic woes of these economies, leaving them in a vicious cycle of deficits. In Nigeria, for instance, fiscal deficits cause country’s bad performance and ranking both in global growth and development indicators. Thus, the use of fiscal deficit to enhance economic performance has proved to be futile and also has left bad economic consequences. Based on the econometric method of Autoregressive Distributed Lag, this study examines how selected macroeconomic indicators influence fiscal deficits in the budgetary policy of Nigeria. Historical data between 1981 and 2017 were used for the study. The study shows a significant positive effect of inflation, oil revenue, and lagged exchange rate on fiscal deficits. There is also evidence that external debt and current exchange rate decrease the level of fiscal deficits. However, the research did not prove robust evidence of fiscal deficit persistence. Government policy should target low level of inflation and exchange rate appreciation as well as the productive investment of oil revenues and economic diversification as the panacea for persistent use of fiscal deficits.

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Relationship Between Crude Oil Prices And Economic Growth In Selected OPEC Countries

Cited by 82 publications

References 20 publications

Dynamics of electricity consumption, oil price and economic growth: Global perspective

Dynamics of electricity consumption, oil price and economic growth: Global perspective

The Effects of Fluctuations of Oil Price on Economic Growth of Libya

Persistence of fiscal deficits in Nigeria: examining the issues

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