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/lp/de-gruyter/the-impact-of-oil-price-on-economic-growth-in-middle-income-oil-LiZGX96S74
- Publisher
- de Gruyter
- Copyright
- © 2022 Motunrayo O. Akinsola, et al., published by Sciendo
- eISSN
- 2360-0047
- DOI
- 10.2478/auseb-2022-0003
- Publisher site
- See Article on Publisher Site
Abstract
AbstractIn this study, the impact of the crude oil price on economic growth is investigated in seven middle-income oil-importing countries in sub-Saharan Africa (SSA), namely Botswana, Kenya, Mauritania, Mauritius, Namibia, South Africa, and Zambia. The estimation is based on both linear and non-linear panel autoregressive distributive lag (panel ARDL) models. The real oil price is decomposed into negative oil price shock and positive oil price shock in order to examine the non-linear impact of oil price on economic growth. Using an annual dataset from 1990 to 2018, it was found that in the symmetric model the oil price has a positive and significant impact on economic growth in the long run. The short-run estimates, however, show that the oil price has no significant impact on economic growth. The overall results from the asymmetric model also show that there is a non-linear relationship between oil price and economic growth in the studied countries.
Journal
Acta Universitatis Sapientiae, Economics and Business – de Gruyter
Published: Sep 1, 2022
Keywords: oil price; economic growth; middle-income countries; sub-Saharan Africa; panel asymmetric effects; Q43; O55; N17; C33