The effects of oil price shocks on the Iranian economy

Abstract

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

“…The empirical evidence reported that the relationship between oil price and GDP is non-linear and asymmetric. Farzanegan and Markwardt (2009) investigated the relationship between oil price and macroeconomic variables for Iran. Their results confirmed that a positive shock in oil price has a significant and positive impact on industrial production.…”

Inflationary effects of oil prices and domestic gasoline prices: Markov-switching-VAR analysis

“…Ewing and Thompson (2007) investigate the cyclical co-movements of crude oil price with consumer prices using Hodrick-Prescott methodology. Their findings support that the price of oil is the leading factor in consumer prices in the U.S. Farzanegan and Markwardt (2009) analyze the dynamic relationship between oil price shocks and major macroeconomic variables in Iran by applying a VAR approach. They identify that negative oil price shocks significantly increase inflation.…”

“…The relevant literature includes the following studies: Kahn and Hampton (1990), Huntington (1998), LeBlanc and Chinn (2004), Cunado and Perez de Gracia (2005), Ewing and Thompson (2007), Farzanegan andMarkwardt (2009), De Gregorio et al (2007), Tang et al (2010), andÁ lvarez et al (2011). These studies reveal that inflation is affected by oil price.…”

Modelling Petroleum Product Prices and the Nigerian Economy

“…Farzanegan and Markwardt [9] stated that due to the high dependence on oil revenues, oil price fluctuations had a special impact on the Iranian economy. Unexpectedly, the authors noted that they could not identify a significant impact of oil price fluctuation on real government expenditures.…”

“…Farzanegan and Markwardt [9] stated that due to the high dependence on oil revenues, oil price fluctuations had a special impact on the Iranian economy. By applying a VAR approach, they analyzed the dynamic relationship between asymmetric oil price shocks and major macroeconomic variables in Iran.…”