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Oil Volatility and Economic Growth: Evidences from Top Oil Trading Countries

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  • Salim Bagadeem

    (Arab Open University, Saudi Arabia.)

Abstract

The research attempts to delve further into the relationship of oil volatility and economic growth of top oil exporting and importing countries. Annual time series data on oil prices and economic growth (1987-2022) has been considered for top 5 exporting and importing countries. Basic statistical techniques and VAR regressions have been used to analyze data. The relationship between volatility and economic activity was found to be more significant for exporting countries rather than importing countries and a lag effect on 6 years is observed as optimal in this relationship. The global financial crisis was observed as an insignificant event on oil volatility (contrary to Ftiti et al.,2016). One of the significant finding of the study is that Japan’s economic growth is positively associated with the long term oil price volatility.

Suggested Citation

  • Salim Bagadeem, 2023. "Oil Volatility and Economic Growth: Evidences from Top Oil Trading Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 381-387, November.
    • Handle: RePEc:eco:journ2:2023-06-40
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    References listed on IDEAS

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    More about this item

    Keywords

    Oil Volatility; Oil Prices; Economic Growth; Var; Time Series;
    All these keywords.

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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