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The Impact of Oil Price Shocks on the Iranian Economy: New evidence

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Listed:
  • Katsuya Ito

    (Fukuoka University)

Abstract

In a cointegrated VAR model we examined the relationship between oil price and macroeconomy in Iran, which is the third largest oil exporter in the world. The sample is quarterly data, ranging from 1994:1 to 2007:4. We find that an increase in real oil prices by 1% is associated with a 0.30% increase in real GDP in the long run, whereas the short-run impact is marginal.

Suggested Citation

  • Katsuya Ito, 2012. "The Impact of Oil Price Shocks on the Iranian Economy: New evidence," Economics Bulletin, AccessEcon, vol. 32(3), pages 2246-2254.
    • Handle: RePEc:ebl:ecbull:eb-12-00120
    as

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    References listed on IDEAS

    as
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    5. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
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    More about this item

    Keywords

    Iran; oil prices; cointegration;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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