IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/163708.html
   My bibliography  Save this article

The Impact Of International Oil Price Increase On The Economy Of Free State Province Of South Africa

Author

Listed:
  • Bahta, Yonas Tesfamariam

Abstract

This article researches quantitatively the impact of an increase in the international oil price on economy of the Free State provincial economy using a Computable General Equilibrium model. The result of an increase international oil price shows that, the percentage in labour demand of transport, other services, agriculture, and manufacturing sector decrease. The GDP of the overall economy decrease by 0.01%, the highest decrease observed in transport sector followed by other services, agriculture and manufacturing sector. It also reflects that from the household income analysis the lower income households are more affected compared to the rest of household categories.Considering poverty (measured in terms of Equivalent Variation) the results also suggest that the lowest welfare gain observed in poor households. The results suggest that it is inevitable that there will always be some external shocks outside the control of economic policies. Hence it is necessary to strengthen the effectiveness of economic growth by incorporating target available resources and ensuring coherence in policy design.

Suggested Citation

  • Bahta, Yonas Tesfamariam, 2014. "The Impact Of International Oil Price Increase On The Economy Of Free State Province Of South Africa," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(01), pages 1-10, January.
  • Handle: RePEc:ags:ijfaec:163708
    DOI: 10.22004/ag.econ.163708
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/163708/files/vol2.no1.pp41.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.163708?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. El-Said, Moataz & Robinson, Sherman, 2000. "GAMS code for estimating a social accounting matrix (SAM) using cross entropy methods (CE)," TMD discussion papers 64, International Food Policy Research Institute (IFPRI).
    2. Helene Maisonnave & Jugal Mahabir & Ramos Mabugu & Margaret Chitiga, 2010. "The Impact of the Global Economic Crisis on Sub-National Government – Lessons from the Free State Province in South Africa," Working Papers 201012, University of Pretoria, Department of Economics.
    3. Y.T. Bahta & B.J. Willemse & B. Grove, 2014. "The role of agriculture in welfare, income distribution and economic development of the Free State Province of South Africa: A CGE approach," Agrekon, Taylor & Francis Journals, vol. 53(1), pages 46-74, March.
    4. Pohl Nielsen, Chantal, 2002. "Social accounting matrices for Vietnam 1996 and 1997," TMD discussion papers 86, International Food Policy Research Institute (IFPRI).
    5. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    6. Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 2000. "Updating and estimating a Social Account Matrix using cross entropy methods," TMD discussion papers 58, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Xiaoyu & Yao, Xilong, 2020. "Can energy supply-side and demand-side policies for energy saving and emission reduction be synergistic?--- A simulated study on China's coal capacity cut and carbon tax," Energy Policy, Elsevier, vol. 138(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haykel Hadj Salem, 2004. "The Macroeconomic Social Accounting Matrix of Tunisia in 1996," Computational Economics 0410001, University Library of Munich, Germany.
    2. Ramos Carvajal, Carmen & Fernández Vázquez, Esteban, 2002. "Temporal projection of an input-output tables series for the region of Asturias," ERSA conference papers ersa02p211, European Regional Science Association.
    3. Pohl Nielsen, Chantal, 2002. "Social accounting matrices for Vietnam 1996 and 1997," TMD discussion papers 86, International Food Policy Research Institute (IFPRI).
    4. Sofyan SYAHNUR & Klaus FROHBERG, 2008. "The Impact of Oil Price Behavior on the Poor in Nanggroe Aceh Darussalam Province, Indonesia," EcoMod2008 23800139, EcoMod.
    5. Cheick Sadibou Fall, 2011. "Une Matrice de Comptabilité Sociale (MCS) du Sénégal pour l’année 2006," Working papers of CATT hal-01880355, HAL.
    6. You, Liangzhi & Wood, Stanley & Wood-Sichra, Ulrike, 2007. "Generating plausible crop distribution and performance maps for Sub-Saharan Africa using a spatially disaggregated data fusion and optimization approach," IFPRI discussion papers 725, International Food Policy Research Institute (IFPRI).
    7. Bahta, Yonas T. & van Niekerk, Walter, 2019. "Pr - Resources Use, Technical Efficiency Of Maize Industry And Performance Of The South African Economy," 22nd Congress, Tasmania, Australia, March 3-8, 2019 345878, International Farm Management Association.
    8. Heckelei, Thomas & Mittelhammer, Ronald C. & Jansson, Torbjorn, 2008. "A Bayesian Alternative To Generalized Cross Entropy Solutions For Underdetermined Econometric Models," Discussion Papers 56973, University of Bonn, Institute for Food and Resource Economics.
    9. Cheick Sadibou Fall, 2011. "Une Matrice de Comptabilité Sociale (MCS) du Sénégal pour l’année 2006," Working Papers hal-01880355, HAL.
    10. G. Ferrari & G. Garau & P. Lecca, 2009. "Constructing a Social Accounting Matrix for Sardinia," Working Paper CRENoS 200902, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    11. Sena, Kenton & Ochuodho, Thomas O. & Agyeman, Domena A. & Contreras, Marco & Niman, Chad & Eaton, Dan & Yang, Jian, 2022. "Wood bioenergy for rural energy resilience: Suitable site selection and potential economic impacts in Appalachian Kentucky," Forest Policy and Economics, Elsevier, vol. 145(C).
    12. Akkemik, K. Ali & Oğuz, Fuat, 2011. "Regulation, efficiency and equilibrium: A general equilibrium analysis of liberalization in the Turkish electricity market," Energy, Elsevier, vol. 36(5), pages 3282-3292.
    13. Akkemik, K. Ali, 2012. "Assessing the importance of international tourism for the Turkish economy: A social accounting matrix analysis," Tourism Management, Elsevier, vol. 33(4), pages 790-801.
    14. repec:lrk:lrkwkp:fiirs016 is not listed on IDEAS
    15. Hilel Hamadache & Sophie S. Drogue, 2014. "Staple food market regulation in Algeria, what is the alternative policy? A CGE analysis for wheat," Post-Print hal-02795719, HAL.
    16. Axel Tonini & Roel Jongeneel, 2009. "The distribution of dairy farm size in Poland: a markov approach based on information theory," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 55-69.
    17. Miguel Henry & George Judge, 2019. "Permutation Entropy and Information Recovery in Nonlinear Dynamic Economic Time Series," Econometrics, MDPI, vol. 7(1), pages 1-16, March.
    18. Hyeok Lee & Yong Kyun Kim, 2018. "The effects of external shocks on the Korean economy: CGE model-based analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-14, December.
    19. Wang, Yafeng & Graham, Brett, 2009. "Generalized Maximum Entropy estimation of discrete sequential move games of perfect information," MPRA Paper 21331, University Library of Munich, Germany.
    20. Arndt, Channing & Simler, Kenneth R., 2005. "Estimating utility-consistent poverty lines," FCND briefs 189, International Food Policy Research Institute (IFPRI).
    21. Luca Secondi, 2019. "Expiry Dates, Consumer Behavior, and Food Waste: How Would Italian Consumers React If There Were No Longer “Best Before” Labels?," Sustainability, MDPI, vol. 11(23), pages 1-15, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:163708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.