The Contribution of Oil Exports to Economic Development: A Study of the Major Oil Exporting Countries

Kader, Ahmad A.

doi:10.1177/056943458002400108

Cited by 4 publications

(4 citation statements)

References 3 publications

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“…Column I in Table 2 shows that a one percent increase (decrease) in oil price will raise (reduce) total consumption expenditure by 0.15 percent holding all other variables constant. This is consistent with the literature on the direct effect of oil prices and gains on economic transformations that follow when oil prices are high in oil-exporting countries (Kader 1980;Fenske and Zurimendi 2017). Higher oil prices imply higher taxes and royalties paid to the oil-exporting government in foreign currencies.…”

Section: Effect Of Oil Price On Overall Consumption Expendituresupporting

confidence: 90%

How do Households Cope during Aggregate Shocks? Evidence from the 2009-2015 Oil Crisis in Nigeria

Animashaun

Wossink

2023

Preprint

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The effect of global oil price fluctuations on households’ costs of living in Nigeria is examined. We extend a simplified model of the microeconomic implication of macroeconomic shocks that allows for cross-sectional heterogeneity in households’ distributions and consumption preferences. First, we show the effect of global oil price shocks heterogeneously varies depending on households’ preferences and consumption bundles. Second, due to the oil economies' enclave nature, we show that shocks would create a specific distributional effect that is more pronounced on households closely related to the oil economy. For the empirical analysis, we use oil prices between the years 2009 to 2015 and micro-level data from the Nigerian General Household Survey (GHS) collected between 2010 and 2016 in Nigeria. Our empirical results confirm our prediction: oil prices have a differential effect depending on how closely the regional economy is tied to oil production. We also find evidence supporting consumption substitution strategies, adjustments in household size, and labor supply as some coping responses to oil price changes. JEL: D1, O12, O55

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Section: Effect Of Oil Price On Overall Consumption Expendituresupporting

confidence: 90%

How do Households Cope during Aggregate Shocks? Evidence from the 2009-2015 Oil Crisis in Nigeria

Animashaun

Wossink

2023

Preprint

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“…The role of the oil factor in the economy, including its interaction with investments, has always been in the spotlight (Ahmad, 1980;Matthiessen, 1982;Saunders, 1984;Van Wijnbergen, 1985;Al-Sahlawi, 1994;Rogoff, 2006;Morse et al,2009;Mohamed Fatimah et al,2009;Mohammadi and Jahan-Parvar, 2011;Mohd et al, 2013;(Musayev 2019;Mikayilov et al, 2020;Mukhtarov et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ali and Harvie, (2017) in his study, examined exogenous oil shocks and mutual financial policies in oil exporting countries and concluded that the trend of low oil prices that began in 2014 is a general trend for a country with a small open developing and natural resource (oil) economy-an exporter such as Libya negatively affects investment along with other economic variables such as domestic income, non-oil GDP, oil exports and the current account. Ahmad (1980) examined the contribution of oil exports to the economic development of the major oil exporting countries in the 1990s, more precisely in 1980, and noted that the multiple increase in the price of crude oil in 1973 led to a rapid improvement in the terms of trade between OPEC countries. This led to an immediate increase in the share of oil export revenues in the balance of payments in GDP and in the financial budget of the main oil exporting countries.…”

Section: Carrilmentioning

confidence: 99%

Impact of Oil Factor on Investment: The Case of Azerbaijan

Humbatova

Huseyn

Hajiyev

2023

IJEEP

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This article investigates the long-term and short-term interactions between crude oil prices, crude oil exports, and domestic and foreign investment in Azerbaijan using annual data from 1999 to 2021. In this research, the ARDL model was used to assess co-integration and short-term relationships. In addition, this study used the FMOLS, DOLS, and CCR co-integration equations to explore long-term coefficients between variables. Granger causation tests were performed, Granger causation analysis was assessed using the Wald test (short-term or weak causation, long-term causation, and both short-term and long-term causation or strong causal relationship). The study proposed 9 hypotheses regarding the impact of oil prices and oil exports on domestic and foreign investment. Some of the hypotheses were generally, if not completely, justified. Based on the established models and tests carried out, there are co-integrating relationships between the variables. Model coefficients are selected according to their economic and statistical significance. It is necessary to increase competition for the market between foreign and domestic investments, not only through the exchange rate, but also through other economic instruments. The study revealed the importance of the exchange rate of the Manat.

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“…One more reason for the limited impact of petroleum products on growth follows from its production structure. It is argued that petroleum product industry is highly capital intensive in nature thus despite the fact that its value added accounts for a large portion of GDP, it employs a very small fraction of the labour force (Kader, 1980 [10], merchandise exports, non-factor services receipts (service sector export henceforth), exports of primary goods, manufactured goods, and petroleum products, respectively, in period t. CM t stands for import of capital goods in period t. The non-export GDP in period t, NY t , is measured by real GDP net of real exports. Finally, K t and L t represent net capital stock and labour force in period t, respectively.…”

Section: Productivity Effects Of Export Compositionmentioning

confidence: 99%

On productivity differential of export composition: evidence from India

Debnath

Nayan

Dasgupta

et al. 2014

Journal of Chinese Economic and Foreign Trade Studies

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Purpose – This paper aims to analyse the relationship between exports and non-export gross domestic product (GDP) in the context of Indian economy during 1988-2012. It considers export both at aggregate and disaggregated levels to examine whether export-led growth (ELG) hypothesis is sensitive to types of goods India exports. Design/methodology/approach – The OLS-based autoregressive distributed lag (ARDL) model has been employed to analyse the potential long-run equilibrium relationship. Further, the error correction model within the ARDL framework is applied to examine the short-run and long-run causal relationship between non-export GDP, export and other variables. The study is based on secondary data. Findings – The study indicates that at aggregate level, exports do not have any significant impact on output of non-export sector, and therefore, it is maintained that ELG hypothesis is not valid at aggregate level in India; when the authors disaggregate exports into merchandise and services exports, the latter has been found to have positive spillover effects on non-export sector of the economy. However, the association between merchandise export and non-export GDP is found to be statistically insignificant. When the authors further disaggregated merchandise exports, the authors observed that primary-product export has a negative association with non-export GDP, but export of manufacturing products found to have a significant positive impact on non-export GDP. Finally, export of petroleum product shows a negative long-run association with non-export GDP, but the association is statistically insignificant. Originality/value – It is not the case that India can simply increase its exports per se and be sure of witnessing economic growth, but instead it is the composition and the concentration of these exports that matters.

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The Contribution of Oil Exports to Economic Development: A Study of the Major Oil Exporting Countries

Cited by 4 publications

References 3 publications

How do Households Cope during Aggregate Shocks? Evidence from the 2009-2015 Oil Crisis in Nigeria

How do Households Cope during Aggregate Shocks? Evidence from the 2009-2015 Oil Crisis in Nigeria

Impact of Oil Factor on Investment: The Case of Azerbaijan

On productivity differential of export composition: evidence from India

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