Relationship Between Crude Oil Prices And Economic Growth In Selected OPEC Countries

Main Article Content

Zied Ftiti
Khaled Guesmi
Frederic Teulon
Slim Chouachi

Keywords

Oil Price Shocks, Stock Markets, Evolutionary Co-Spectral Analysis, OPEC, Economic Growth

Abstract

The aim of this study is to examine the degree of interdependence between oil prices and economic activity growth for four major countries (United Arab Emirates, Kuwait, Saudi Arabia, and Venezuela) in the Organization of the Petroleum Exporting Countries (OPEC) over the period from 3 September 2000 to 3 December 2010. We propose the frequency approach of Priestley and Tong (1973), which is the evolutionary co-spectral analysis. This method  offers a time-varying dynamic correlation measure for different horizons, short-run and medium-run. To complete our study by analyzing long-run dependence, we use the cointegration procedure developed by Engle and Granger (1987). We show that oil price shocks in periods during period of fluctuations in the global business cycle and/or financial turmoil affect the relationship between oil and economic growth in OPEC countries.

Downloads

Download data is not yet available.
Abstract 4336 | PDF Downloads 5537

Most read articles by the same author(s)

1 2 3 > >>