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Oil Price Shocks and Economic Performance in Africa’s Oil Exporting Countries

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  • Mathew Ekundayo Rotimi

    (University of KwaZulu-Natal)

  • Harold Ngalawa

    (University of KwaZulu-Natal)

Abstract

This study applied recently developed Panel Structural Vector Autoregressives (P-SVAR) estimating technique to empirically assess the transmission processes of oil price shocks and how it impacts economic performance within the monetary framework of the Africa’s net oil exporting economies. The study considered, among other variables; inflation, money supply, bank rate, exchange rate, gross domestic product, unemployment and oil price shocks which is treated as exogenous while other variables as endogenous variables. The period of the study covered 1980- 2015. The analysis of the data revealed that there were significant responses to oil price shocks during this period. The result of the study showed that oil price shocks have large impact on the economic performance of Africa’s oil exporting countries and also that transmission of oil price ensues monetary medium. Hence, the study suggests that strong monetary control measure should be put in place whenever positive shocks in oil is experienced.

Suggested Citation

  • Mathew Ekundayo Rotimi & Harold Ngalawa, 2017. "Oil Price Shocks and Economic Performance in Africa’s Oil Exporting Countries," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(5), pages 169-188, OCTOBER.
    • Handle: RePEc:dug:actaec:y:2017:i:5:p:169-188
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    10. Albert Olusanmi ILUGBEMI & Festus Olumide FAWEHINMI, 2020. "Impacts of Oil Price Volatility and Monetary Policy on Economic Performance Of Non-Oil Producing Countries in Africa," Business & Management Compass, University of Economics Varna, issue 2, pages 180-197.
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    15. Tii N. Nchofoung, 2023. "Oil price shocks and energy transition in Africa," Working Papers 23/064, European Xtramile Centre of African Studies (EXCAS).
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