THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA
This article researches quantitatively the impact of an increase in the international oil price on economy of the Free State provincial economy using a Computable General Equilibrium model. The result of an increase international oil price shows that, the percentage in labour demand of transport,...
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| Format: | Article |
| Language: | English |
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International Journal of Food and Agricultural Economics
2014-01-01
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| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | http://www.foodandagriculturejournal.com/vol2.no1.pp41.pdf |
| _version_ | 1797907531629068288 |
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| author | Yonas Tesfamariam Bahta |
| author_facet | Yonas Tesfamariam Bahta |
| author_sort | Yonas Tesfamariam Bahta |
| collection | DOAJ |
| description | This article researches quantitatively the impact of an increase in the international oil price
on economy of the Free State provincial economy using a Computable General Equilibrium
model. The result of an increase international oil price shows that, the percentage in labour
demand of transport, other services, agriculture, and manufacturing sector decrease. The
GDP of the overall economy decrease by 0.01%, the highest decrease observed in transport
sector followed by other services, agriculture and manufacturing sector. It also reflects that
from the household income analysis the lower income households are more affected
compared to the rest of household categories.Considering poverty (measured in terms of
Equivalent Variation) the results also suggest that the lowest welfare gain observed in poor
households. The results suggest that it is inevitable that there will always be some external
shocks outside the control of economic policies. Hence it is necessary to strengthen the
effectiveness of economic growth by incorporating target available resources and ensuring
coherence in policy design. |
| first_indexed | 2024-04-10T10:38:17Z |
| format | Article |
| id | doaj.art-ecae835392984ae4ad3862f274c45c26 |
| institution | Directory Open Access Journal |
| issn | 2147-8988 |
| language | English |
| last_indexed | 2024-04-10T10:38:17Z |
| publishDate | 2014-01-01 |
| publisher | International Journal of Food and Agricultural Economics |
| record_format | Article |
| series | International Journal of Food and Agricultural Economics |
| spelling | doaj.art-ecae835392984ae4ad3862f274c45c262023-02-15T16:20:46ZengInternational Journal of Food and Agricultural EconomicsInternational Journal of Food and Agricultural Economics2147-89882014-01-01214150THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICAYonas Tesfamariam Bahta0University of the Free State, South AfricaThis article researches quantitatively the impact of an increase in the international oil price on economy of the Free State provincial economy using a Computable General Equilibrium model. The result of an increase international oil price shows that, the percentage in labour demand of transport, other services, agriculture, and manufacturing sector decrease. The GDP of the overall economy decrease by 0.01%, the highest decrease observed in transport sector followed by other services, agriculture and manufacturing sector. It also reflects that from the household income analysis the lower income households are more affected compared to the rest of household categories.Considering poverty (measured in terms of Equivalent Variation) the results also suggest that the lowest welfare gain observed in poor households. The results suggest that it is inevitable that there will always be some external shocks outside the control of economic policies. Hence it is necessary to strengthen the effectiveness of economic growth by incorporating target available resources and ensuring coherence in policy design.http://www.foodandagriculturejournal.com/vol2.no1.pp41.pdfOil price; HouseholdsGDPEquivalent VariationFree State ProvinceCGE |
| spellingShingle | Yonas Tesfamariam Bahta THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA International Journal of Food and Agricultural Economics Oil price; Households GDP Equivalent Variation Free State Province CGE |
| title | THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA |
| title_full | THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA |
| title_fullStr | THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA |
| title_full_unstemmed | THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA |
| title_short | THE IMPACT OF INTERNATIONAL OIL PRICE INCREASE ON THE ECONOMY OF FREE STATEPROVINCE OF SOUTH AFRICA |
| title_sort | impact of international oil price increase on the economy of free stateprovince of south africa |
| topic | Oil price; Households GDP Equivalent Variation Free State Province CGE |
| url | http://www.foodandagriculturejournal.com/vol2.no1.pp41.pdf |
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