Revisiting the Oil-Growth Nexus : Evidence from Selected Oil Importing and Oil Exporting Countries

This study investigates the impact of oil prices on economic growth in oil importing countries (China, Germany, Italy, India, Japan, Netherlands, South Korea, Spain and Thailand) and oil exporting countries (Brazil, Canada, Iran, Kuwait, Mexico, Nigeria, Norway, Russia, Saudi Arabia and United Arab Emirates), covering the period of 1995- 2021. Under the panel estimation approach, we can postulate that oil price is exerting a significantly positive impact towards economic growth for oil exporting nations, regardless of whether the time horizon is in short run or long-run contexts. On the other hand, oil importing nations tend to experience negative impact from the oscillatory fluctuations in the oil price. It is proposed that policy makers in oil importing nations can respond to the positive oil price shock can be lessened by hedging product purchases using futures contracts on net oil-importing nations with poor exports of other commodities. Alternatively, for net oil-importers, pricing-based policies such as transferring price increases to consumers and providing subsidies can be implemented to reduce the negative effect of oil prices hikes towards the economy

Assessing The Impact of Oil Prices on Economic Growth in Oil Importing and Oil Exporting Countries

This study investigates the impact of oil prices on economic growth in oil importing and oil exporting countries covering the period from 1995 to 2021. Overall, there are 10 oil importing (China, Germany, Italy, India, Japan, Netherlands, South Korea, Spain and Thailand) and 10 oil exporting (Brazil, Canada, Iran, Kuwait, Mexico, Nigeria, Norway, Russia, Saudi Arabia and United Arab Emirates) countries have been analysed in this study. Moving on, the study employed panel unit root test, panel cointegration test, FMOLS, panel ARDL estimation and panel Granger causality test to analyzed the variables. The findings of the study shows that oil price has a positive relationship with economic growth in oil exporting nations in both short run and long-run. However, oil price has a negative relationship on economic growth in oil importing nations