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Oil price volatility and economic growth: Evidence from advanced economies using more than a century's data

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journal contribution
posted on 10.12.2018, 09:21 authored by Renee Van Eyden, Mamothoana Difeto, Rangan Gupta, Mark Wohar
This paper uses a number of different panel data estimators, including fixed effects, bias-corrected least squares dummy variables (LSDVC), generalised methods of moments (GMM), feasible generalised least squares (FGLS), and random coefficients (RC) to analyse the impact of real oil price volatility on the growth in real GDP for 17 member countries of the Organisation for Economic Co-operation and Development (OECD), over a 144-year time period from 1870 to 2013. The main finding of the study is that oil price volatility has a negative and statistically significant impact on economic growth of the OECD countries in the sample. In addition, when allowing for slope heterogeneity, oil-producing countries are significantly negatively impacted by oil price uncertainty, most notably Norway and Canada.

History

School

  • Business and Economics

Department

  • Business

Published in

Applied Energy

Volume

233-234

Pages

612 - 621

Citation

VAN EYDEN, R. ... et al, 2018. Oil price volatility and economic growth: Evidence from advanced economies using more than a century's data. Applied Energy, 233-234, pp.612-621.

Publisher

© Elsevier

Version

AM (Accepted Manuscript)

Publisher statement

This paper was accepted for publication in the journal Applied Energy and the definitive published version is available at https://doi.org/10.1016/j.apenergy.2018.10.049

Acceptance date

20/02/2018

Publication date

2018-10-26

Copyright date

2019

ISSN

0306-2619

Language

en