Petroleum Economics in Canadian after World War II

Abstract

Canadian represents a good case study to examine the effect of oil price, because most of its earning dependence on exporting crude oil. Canadian is one of the major oil exporting countries. Generally, the national income depends on crude oil. Oil revenue in Canadian covers 90 percent of Canadian government’s budget and also Canadian economy could be effect by would economic during economic problems. Thus, increasing oil crude oil price can affect on economic growth in Canadian. So it is crucial to use other resource instead of oil revenue as a new strategy to gain national revenue. The main objective of this study is to examine the effects of oil price and oil production value on economic growth. Annual growth rate, compound growth rate and correlation coefficient can be used to estimate of the data. The data is annual data which were converting a period of 21 years from 1995-2017. As a result, Economic growth is one of the most important sources of economic transformation because it reflects the community's ability to increase productive capacity and optimal investment and also sustainability requirement includes a diversified economy on the face of shocks, dynamically adopts technology and head accumulation human money, competitively can gain relative advantages compared to the other. Thus, it operates within stable, stable economic policies and economic development and there was positively statistically significance between oil price and GDP, oil production value and GDP.