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https://eprints.leedsbeckett.ac.uk/id/eprint/5750/1/ImportanceofOilShocksandtheGCCMacroeconomyAM-NASIR.pdf
Accepted (AM)Open Access (License Unspecified), Open
Journal article
Importance of oil shocks and the GCC macroeconomy: A structural VAR analysis
Resources policy, v 61, pp 166-179
01 Jun 2019
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This study is an endeavour to analyse the influence of oil price shocks on the macroeconomy of the Gulf Cooperation Council (GCC) member countries (Bahrain, Kuwait, KSA, Oman, Qatar and UAE). By employing a structural Vector auto-regression (SVAR) model for period 1980-2016, our key findings suggest that there are significant positive effects of oil price shocks on the GDP, inflation and trade balance of those countries. The findings, however, show substantial heterogeneities in the responses of the GCC members to oil shocks, which suggests the presence of idiosyncrasies in the underlying structure of their economies and differences in the degree to which these economies are dependent on oil revenues. In terms of inflation, there are also major differences in the intensity of the impact of oil shocks on the overall price, which implies that the GCC monetary policies might face a different genre of challenges to attain price stability in the face of those shocks. Our findings have profound policy implications in terms of diversifying the economies of the GCC countries and efforts to decrease the sole dependence on oil revenues.
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Details
- Title
- Importance of oil shocks and the GCC macroeconomy: A structural VAR analysis
- Creators
- Muhammad Ali Nasir - Leeds Beckett UniversityAhmed Abdulsalam Al-Emadi - Qatar Central BankMuhammad Shahbaz - COMSATShawkat Hammoudeh - Lebow College of Business, Drexel University, United States, Montpellier Business School, Montpellier, France
- Publication Details
- Resources policy, v 61, pp 166-179
- Publisher
- Elsevier
- Number of pages
- 14
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000469889800015
- Scopus ID
- 2-s2.0-85061771007
- Other Identifier
- 991019167996104721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Environmental Studies