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Oil Price Volatility and Economic Growth: Evidence from the Middle East

Author

Listed:
  • Nashat Ali Almasria

    (Department of Accounting and Finance, College of Business Administration, A’Sharqiyah University, Ibra, Oman)

  • Hassan Hamad Aldboush

    (Department of Finance and Banking, Faculty of Business, Philadelphia University, Amman, Jordan)

  • Omar Al-Kasasbeh

    (Faculty of Business, Amman Arab University, Jordan)

  • Abdalwali Lutfi

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia; College of Business Administration, The University of Kalba, Kalba, 11115, Sharjah, United Arab Emirates; Jadara University Research Center, Jadara University, Jordan; Applied Science Research Center, Applied Science Private University, Jordan; MEU Research Unit, Middle East University, Amman, Jordan.)

  • Fadya Burhan Alhajahmad

    (The World Islamic Science and Education University, Jordan)

  • Thamir Al Barrak

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Ghaith Alsheikh

    (Faculty of Business, Amman Arab University, Jordan)

Abstract

This paper seeks to study the effect of oil price volatility on economic growth in Middle East countries (Jordan, United Arab Emirates, Saudi Arabia, Kuwait, Qatar, and Turkey). The study's goals were achieved by utilising a range of econometric methodologies. For instance, the IPS and LLC procedures are used to study unit root qualities, while Westerlund and Edgerton's (2008) test is used to study cointegration. The findings demonstrate a long-term correlation between Oil price volatility, inflation, investment, and economic growth. The study concludes with more detailed findings regarding how oil prices affect gross domestic product growth. As such, policymakers can use it to support their decision-making.

Suggested Citation

  • Nashat Ali Almasria & Hassan Hamad Aldboush & Omar Al-Kasasbeh & Abdalwali Lutfi & Fadya Burhan Alhajahmad & Thamir Al Barrak & Ghaith Alsheikh, 2024. "Oil Price Volatility and Economic Growth: Evidence from the Middle East," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 417-421, May.
    • Handle: RePEc:eco:journ2:2024-03-42
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Oil Price Volatility; Investment; Inflation; Cross-Sectional;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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