IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v58y2020i2d10.1007_s00181-018-1522-8.html
   My bibliography  Save this article

Crude oil trade and current account deficits: replication and extension

Author

Listed:
  • Andrew Musau

    (Inland Norway University of Applied Sciences)

  • Steinar Veka

    (Inland Norway University of Applied Sciences)

Abstract

Huntington (Energy Economics, 50, 70–79) explores the association between oil trade and a nation’s current account balance using a sample of 91 countries observed over the years 1984–2009. Differentiating exporters from importers, he finds that net oil exports are significant in explaining current account surpluses but net oil imports do not explain current account deficits. We successfully replicate this result after expanding the sample of countries by two-fifths and increasing the time frame to include recent periods of high volatility in oil prices. Furthermore, we investigate differences in the oil trade–current account association between countries grouped in terms of income per capita as well as the association between oil trade and the different components that constitute the current account. Our results reveal a positive association between net oil export balance and the trade balance component but no association with the non-trade balance component, suggesting the dominance of the former.

Suggested Citation

  • Andrew Musau & Steinar Veka, 2020. "Crude oil trade and current account deficits: replication and extension," Empirical Economics, Springer, vol. 58(2), pages 875-897, February.
    • Handle: RePEc:spr:empeco:v:58:y:2020:i:2:d:10.1007_s00181-018-1522-8
    DOI: 10.1007/s00181-018-1522-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00181-018-1522-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00181-018-1522-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Baek, Jungho & Yoon, Jee Hee, 2022. "Do macroeconomic activities respond differently to oil price shocks? New evidence from Indonesia," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 852-862.
    2. Abiodun Adegboye & Olawale Daniel Akinyele, 2022. "Assessing the determinants of government spending efficiency in Africa," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    3. Jungho Baek, 2023. "Oil Prices, World Trade Policy Uncertainty, and the Trade Balance: The Case of Korea," Commodities, MDPI, vol. 2(3), pages 1-13, June.
    4. Baek, Jungho & Yoon, Jee Hee, 2023. "Shocks of crude oil prices and world trade policy uncertainty: How much do they matter for China’s trade balance with its three largest partners?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 914-921.
    5. Jungho Baek, 2022. "Not all oil shocks on the trade balance are alike: Empirical evidence from South Korea," Australian Economic Papers, Wiley Blackwell, vol. 61(2), pages 291-303, June.
    6. Baek, Jungho, 2023. "A new look at the crude oil shocks and trade nexus: Evidence from bilateral trade between Korea and its three largest partners," Resources Policy, Elsevier, vol. 85(PA).

    More about this item

    Keywords

    Current account; Oil trade; Cross-country analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Crude oil trade and current account deficits: replication and extension (Emp Econ 2020) in ReplicationWiki

    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:spr:empeco:v:58:y:2020:i:2:d:10.1007_s00181-018-1522-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.