IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.48year2014issue2pp329-361.html
   My bibliography  Save this article

Oil spill(over)s: linkages in petroleum product pricing policies in west african countries

Author

Listed:
  • Antonio C. David*
  • Mohamed El Harrak
  • Marshall Mills
  • Lorraine Ocampos

    (International Monetary Fund, USA)

Abstract

The volatility in international oil prices has important implications for policies that determine national retail prices of petroleum products. This paper addresses a number of issues regarding petroleum product pricing in Western Africa emphasizing international spillovers that may limit the ability of policymakers to adopt first best policies. We use panel unit root rests and long-run modelling based on vector error correction models to assess links and convergence in petroleum product prices across countries. Our results indicate that in general over the long-run there is convergence in prices across countries. Furthermore, the estimation results for models including gasoline and diesel prices suggest the presence of economically important spillovers with long run multipliers varying significantly according to the country groupings and econometric specifications considered. In contrast, the econometric results for kerosene prices not only indicate a weaker link between prices across countries, but also a much slower adjustment to equilibrium. In light of these important spillovers, the need to better coordinate pricing and tax policies towards petroleum products at the regional level becomes apparent.

Suggested Citation

  • Antonio C. David* & Mohamed El Harrak & Marshall Mills & Lorraine Ocampos, 2014. "Oil spill(over)s: linkages in petroleum product pricing policies in west african countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 329-361, April-Jun.
  • Handle: RePEc:jda:journl:vol.48:year:2014:issue2:pp329-361
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.2.david.html
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Caceres & Marcos Poplawski-Ribeiro & Darlena Tartari, 2013. "Inflation Dynamics in the CEMAC Region," Journal of African Economies, Centre for the Study of African Economies, vol. 22(2), pages 239-275, March.
    2. Kubinschi Matei & Barnea Dinu & Zlatcu Iuliana, 2019. "Estimating fuel price volatility and spillover effects across different European countries," Management & Marketing, Sciendo, vol. 14(4), pages 419-430, December.
    3. Simone Maciel Cuiabano & Maxwell Opoku-Afari, 2018. "Exchange Rate Dynamics and Monetary Integration in the EAC Countries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(3), pages 267-279, September.

    More about this item

    Keywords

    Oil Prices; International Spillovers; Smuggling; West Africa; and Petroleum Product Pricing.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.48:year:2014:issue2:pp329-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.