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Article: Oil price movements and GDP growth in GCC countries: is the relationship symmetric?
- Article from:
- Indian Journal of Economics and Business
- Article date:
- December 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Indian Journal of Economics and Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Abstract
This paper examines whether oil price movements in one group of oil-exporting countries, namely those of the Gulf Cooperation Council, produce asymmetric effects on GDP growth as is commonly found with oil-importing countries. The paper employs a SUR model regressing annual growth rates against positive and negative changes in oil prices. Some evidence on the presence of asymmetries surfaces but is not overwhelming and is country specific.
JEL Classification: O13, O53
Keywords: Oil, Economic Growth, Asymmetric
I. INTRODUCTION
No one doubts the importance of oil for the petroleum exporters of the Gulf Cooperation ...