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Can Oil Prices Volatility Explain Economic Growth?

Author

Listed:
  • Ahmad Al-Harbi

    (Alasala Colleges, Saudi Arabia)

  • Moid U. Ahmad

    (Lead Researcher, Scholeio Consultants, India; & E-learning Producer, Dubai Knowledge Park, Dubai, UAE)

Abstract

The research focuses on the relationship between oil price volatility and economic activity in the context of a sample of six GCC countries. The study derives the results from an annual data set (1998-2021) and involves correlations, linear regression, curvilinear regression, panel data regression and causality tests to draw conclusions. It was observed that panel data analysis with random effects was best able to explain the positive relationship between oil price volatility and economic activity. Kuwait was observed as an exception country in the study as it demonstrated insignificant relationships and differentiating behavior. The global financial crisis was observed as a significant event on global oil volatility.

Suggested Citation

  • Ahmad Al-Harbi & Moid U. Ahmad, 2024. "Can Oil Prices Volatility Explain Economic Growth?," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 614-620, November.
    • Handle: RePEc:eco:journ2:2024-06-60
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Oil Price; Economic Growth; Regressions; Gulf Cooperation Council;
    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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