Determinants of Oil Demand in OECD Countries: An Application of Panel Data Model

Abstract

Abstract

Macroeconomic Determinants of Crude Oil Demand in Ghana

“…The existing literature posits that aggregate oil consumption is determined by factors, such as prices, income and the economic structure of the country (Howarth, Schipper & Andersson, 1993). The crude oil demand model used in this study is based on the general energy demand model, which is specified as a function of price of crude oil, per capita income (GDP) and other macroeconomics control variables (Marbuah, 2014; Ozcan, 2015). This is expressed in functional form as…”

“…Among them are time series and panel data models, partial adjustment and lagged models, ARDL and other cointegration models. To a larger extent, the studies do not always report unanimous findings on the effect of the macroeconomic determinants of demand for energy, though most confirmed the expected signs of real price and real income effects based on demand theory (Ozcan, 2015). Table 1 provides a summary of empirical studies that focused specifically on the demand for oil consumption.…”

“…Abledu, Agyemang and Semevor (2013), for example, attribute the high demand for crude oil and refined petroleum products in Ghana to socioeconomic and technical factors, such as growth in economic output and incomes, population shifts from rural to urban, growth in industrial output, and growth in the transportation sector. Most studies on energy demand have focused more on the price and income elements and used other variables as policy, structural and technological control factors (Breitenfellner et al, 2009; Cantah & Asmah, 2015; Ozcan, 2015; Ziramba, 2010).…”