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The relationship between oil price changes and economic growth in Canadian provinces: Evidence from a quantile-on-quantile approach

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  • Moghaddam, Mohsen Bakhshi

Abstract

This paper analyzes the relationship between oil price changes and economic growth in Canadian provinces using the quantile-on-quantile (QQ) approach. The applied methodology can capture the linkage between the two variables under different economic states while considering the size and sign of the oil price changes. The results show that the impacts of oil price changes on Canadian provinces’ economic growth are considerably heterogeneous across different quantiles of the two variables. The results also reveal that the oil-economic growth relationship is heterogeneous across Canadian provinces, both within each group of oil-producing and non-oil-producing provinces and between the two groups.

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  • Moghaddam, Mohsen Bakhshi, 2023. "The relationship between oil price changes and economic growth in Canadian provinces: Evidence from a quantile-on-quantile approach," Energy Economics, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:eneeco:v:125:y:2023:i:c:s0140988323002876
    DOI: 10.1016/j.eneco.2023.106789
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    Cited by:

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    More about this item

    Keywords

    Oil price shocks; Economic growth; Heterogeneous effects; Quantile-on-quantile regression; Interprovincial trade; Canada;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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