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Fluctuations of Oil Prices and Gross Domestic Product in Spain

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  • Manuel Cantavella

    (Departamento de Econom a, Instituto de Econom a Internacional, Universitat Jaume I, Campus Riu Sec 12072, Castell n, Spain.)

Abstract

The objective of this research is to analyze the asymmetric impact of crude oil prices on the real per capita gross domestic product (GDP) between 1945 and 2018 in Spain. The decomposition of oil prices into positive and negative partial sums in a nonlinear autoregressive distributed lag (NARDL) model allows examine the results derived from the fluctuations of oil prices in the international markets. The effects of those movements on per capita GDP are primarily long range, having the long-run oil price decreases a larger impact on the per capita GDP than the oil price increases. In spite of these asymmetric effects, the energy policy agenda should address some issues related to not only tax handling but to market competition and efficient wages mechanisms as well.

Suggested Citation

  • Manuel Cantavella, 2020. "Fluctuations of Oil Prices and Gross Domestic Product in Spain," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 57-63.
    • Handle: RePEc:eco:journ2:2020-02-8
    as

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    References listed on IDEAS

    as
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    7. Michael Bruno & Jeffrey Sachs, 1982. "Input Price Shocks and the Slowdown in Economic Growth: The Case of U.K.Manufacturing," NBER Working Papers 0851, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. Mulashani, Alvin K. & Shen, Chuanbo & Nkurlu, Baraka M. & Mkono, Christopher N. & Kawamala, Martin, 2022. "Enhanced group method of data handling (GMDH) for permeability prediction based on the modified Levenberg Marquardt technique from well log data," Energy, Elsevier, vol. 239(PA).

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    More about this item

    Keywords

    per capita GDP; asymmetric oil prices; NARDL; Spain;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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