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Short-run and long-run effect of oil consumption on economic growth: ECM model

Author

Listed:
  • Sofyan Syahnur
  • Endra Endra
  • Said Muhammad

Abstract

The aim of this study is to investigate the effect of oil consumption on economic growth of Aceh in the long-run and short-run by using Error Correction Model (ECM) model during the period before the world commodity prices fall of 1985–2008. Four types of oil consumption will be focused on Avtur, Gasoline, Kerosene and Diesel. The data is collected from Central Bureau of Statistics of Aceh (BPS Aceh). The result of this study shows a merely positive effect of oil consumption type diesel to economic growth in Aceh both in the short run and the long run.

Suggested Citation

  • Sofyan Syahnur & Endra Endra & Said Muhammad, 2014. "Short-run and long-run effect of oil consumption on economic growth: ECM model," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(1), pages 38-49.
    • Handle: RePEc:uii:journl:v:6:y:2014:i:1:p:38-49:id:3866
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    File URL: https://journal.uii.ac.id/JEP/article/view/3866/3436
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