Does oil price spur public expenditures in Saudi Arabia, Kuwait and United Arab Emirates?

Faheem, Muhammad; Azali, M.; Lee, Chin; Mazlan, Nur Syazwani

doi:10.1002/pa.2604

Cited by 17 publications

(11 citation statements)

References 55 publications

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“…In an oil-dependent economy, like Nigeria, this study hypothesized that external trade changes as oil price fluctuates following the extant literature (e.g. Rafiq et al, 2016;Faheem et al, 2020;Baek and Choi, 2020). Thus, the size of the economy is hugely affected by total value of the oil export earnings, which in turn does not only depend on the volume of oil export sold abroad but largely on prices paid for them.…”

Section: Empirical Modelmentioning

confidence: 98%

Symmetric or asymmetric: how is Nigeria's bilateral trade balance responding to oil price and exchange rate changes?

Ogbonna

Ichoku

2022

JES

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PurposeThe experience of rising trade imbalance between Nigeria and its key trading partners in recent years motivated this study. Previous studies on this issue either ignored bilateral level or assumed that the effect of crude oil price and/or exchange rate changes on trade balance is symmetric. Consequently, this study investigates whether Nigeria's bilateral trade balance with Belgium, China, United Kingdom (UK) and USA is responding symmetrically or asymmetrically to changes in oil price and exchange rate.Design/methodology/approachThe authors used nonlinear autoregressive-distributed lag (NARDL) model that decomposed oil price and exchange rate into partial sum processes of positive and negative changes over the period 1999Q1–2019Q4.FindingsThe study finds that the effects of oil price hike and plunge asymmetrically influence Nigeria's trade balance with the UK and USA. Further evidence indicated that oil price plunge exerts greater influence than price hike in all the cases, except the UK in the long run. Furthermore, Nigeria's trade balance responds asymmetrically and significantly to changes in exchange rate with China in the long run and with China and the UK in the short run. Specifically, the depreciation effect is more prominent than appreciation.Originality/valueSignificant contributions to the existing literature in Nigeria include the recognition that the effects of oil price and exchange rate changes on trade are asymmetric and the disaggregation of trade into bilateral level to identify country-specific effect.

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Section: Empirical Modelmentioning

confidence: 98%

Symmetric or asymmetric: how is Nigeria's bilateral trade balance responding to oil price and exchange rate changes?

Ogbonna

Ichoku

2022

JES

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“…In all versions of Wagner's theory, unidirectional causality seemed to shift from economic growth to government spending. Faheem, Azali, Chin, and Mazlan (2021) examined the dynamic relationship between oil prices and government spending in Saudi Arabia, Kuwait, and the United Arab Emirates from 1991 to 2017. The study outcomes unveiled the existence of asymmetric behaviour in the oil price, which is a vital aspect considered by fiscal authorities when deciding on public expenditures.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In recent years, some oil exporters had diversified their economies and minimised their oil rents dependency, such as Brazil, Mexico, Malaysia, and Vietnam (Ross, 2019;Charfeddine & Barkat, 2020;Tang & Abosedra, 2020). Oil rents are still vital in formulating PGEB among oil-exporting countries (Hassan, 2021;Faheem et al, 2021).…”

Section: Graph 8: Effect Of Oil Rents On Primary Government Expenditu...mentioning

confidence: 99%

Landscape Discussion of Oil Rents and Primary Government Expenditure Budget

Zakaria¹,

Musa²,

Mohamed³

et al. 2022

ipnj

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Purpose: This study compares Malaysia’s oil rent dynamics and primary government approved budget (PGEB) with other major oil-exporting countries. This study reviews the annual time series data from 2005 to 2020 of oil rents and PGEB. Methodology: The outcomes derived from meta-analysis approach are presented in graphical comparisons of oil rents and PGEB of Malaysia with other oil exporters. A horizontal comparison was also carried out. Kuwait, Saudi Arabia, Nigeria, Kazakhstan, Brazil, and the Russian Federation were selected as relevant oil exporters. Findings: Referring to the historical graphical presentation, the oil market fluctuations were linearly aligned to the budget figure among oil exporters. The study results portray historical connections between oil rents and PGEB in the context of Malaysia and other oil exporters, which may be beneficial to policymakers and practitioners in their decision-making process. Practical Implications: The findings that display the historical connections of Malaysian oil rents and PGEB with other oil exporters serve as a guideline to policymakers and practitioners. Originality/Value: In addition to the Malaysian setting, the scenario of other oil exporters amplifies the dynamics of oil rents on PGEB formulation. Keywords: Oil rents, primary government, approved budget, crude oil, Malaysian economy.

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“…The study implemented ARDL and NARDL (for asymmetric behaviour) approaches to estimate our results. This is unique methodology gives results for different lag values, works for the small size of data, convenient to use, and provides good results of estimations (Pesaran, 2001;Faheem and Chin, 2021). To estimate the above model, we apply the ARDL bounds approach by using the following specified model:…”

Section: Model Specificationmentioning

confidence: 99%

Unveiling the asymmetric impact of energy consumption on environmental mitigation in the manufacturing sector of Pakistan

Tanveer

Song

Faheem

et al. 2021

Environ Sci Pollut Res

Self Cite

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The manufacturing sector is the backbone for the development of an economy. Numerous studies investigate the impact of aggregative energy consumption on environmental degradation by using typical econometric techniques. To correct this gap our study uses energy consumption and environmental degradation only in the manufacturing sector of Pakistan for the period 1985 to 2018. Our study also demonstrates the symmetric and asymmetric behaviour of energy consumption with carbon emissions by using a recently developed methodology byShin et al. (2014).The linearARDL result shows energy consumption and financial development intensifies environmental degradation. While FDI and globalization mitigate environmental sustainability also the results validate pollution halo hypotheses in Pakistan. However, nonlinear ARDL results confirm theasymmetric behaviour of energy consumption with co2 emission. This study employs implications for policymakers in Pakistan to consider asymmetric behavior of energy consumption as well as the installation of renewable energy sources and technological improvements in the industrial sector need to mitigate environmental sustainability. Further, there is a need to enhance globalization and FDI for Pakistan to achieve its environmental targets.

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Does oil price spur public expenditures in Saudi Arabia, Kuwait and United Arab Emirates?

Cited by 17 publications

References 55 publications

Symmetric or asymmetric: how is Nigeria's bilateral trade balance responding to oil price and exchange rate changes?

Symmetric or asymmetric: how is Nigeria's bilateral trade balance responding to oil price and exchange rate changes?

Landscape Discussion of Oil Rents and Primary Government Expenditure Budget

Unveiling the asymmetric impact of energy consumption on environmental mitigation in the manufacturing sector of Pakistan

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