An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies
The focus of this study, is to empirically investigate the nexus between oil price collapse and economic growth in sub-Saharan Africa oil based economies, specifically from Angola, Nigeria and Sudan between January, 2010 and December, 2015, through panel random effects model (REM): Economic growth r...
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| Format: | Article |
| Language: | English |
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Master Program in Economics, Graduate Program of Universitas Jambi
2018-06-01
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| Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| Subjects: | |
| Online Access: | https://online-journal.unja.ac.id/index.php/JES/article/view/4973 |
| _version_ | 1818247011266199552 |
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| author | KEJI Sunday Anderu |
| author_facet | KEJI Sunday Anderu |
| author_sort | KEJI Sunday Anderu |
| collection | DOAJ |
| description | The focus of this study, is to empirically investigate the nexus between oil price collapse and economic growth in sub-Saharan Africa oil based economies, specifically from Angola, Nigeria and Sudan between January, 2010 and December, 2015, through panel random effects model (REM): Economic growth rate (GDPR) and independent variables: Oil price (OPR), Exchange rate (EXR), Industrial Output (IND) and Terms of Trade (TOT. REM result showed that there is negative link between oil price collapse and the economic growth in the case of Angola, Nigeria and Sudan, which confirmed the nexus between oil price collapse and economic growth. Post estimation tests such as Hausman and Breusch and Pagan Lagrange Multiplier Test were adopted to empirically show the consistency and efficiency of the model. Interestingly, the two key variables (GDPR and OPR) disclose how unprecedented oil price fall disrupts economic growth of the selected economies. Meanwhile, poor institutional quality in the oil sector coupled with poor fiscal measure among others, further expose these economies to unprecedented external shocks that was characterized by skyrocket exchange rate, hence destabilize growth within the period under review. Therefore, the need for a robust fiscal measure is pertinent in order to sustain economic growth |
| first_indexed | 2024-12-12T14:57:55Z |
| format | Article |
| id | doaj.art-fd857634206a45d2b566096a2181b2e3 |
| institution | Directory Open Access Journal |
| issn | 2338-4603 2355-8520 |
| language | English |
| last_indexed | 2024-12-12T14:57:55Z |
| publishDate | 2018-06-01 |
| publisher | Master Program in Economics, Graduate Program of Universitas Jambi |
| record_format | Article |
| series | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| spelling | doaj.art-fd857634206a45d2b566096a2181b2e32022-12-22T00:20:53ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202018-06-015430031310.22437/ppd.v5i4.49734973An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economiesKEJI Sunday Anderu0Department of Economics, Federal University Oye-Ekiti, NigeriaThe focus of this study, is to empirically investigate the nexus between oil price collapse and economic growth in sub-Saharan Africa oil based economies, specifically from Angola, Nigeria and Sudan between January, 2010 and December, 2015, through panel random effects model (REM): Economic growth rate (GDPR) and independent variables: Oil price (OPR), Exchange rate (EXR), Industrial Output (IND) and Terms of Trade (TOT. REM result showed that there is negative link between oil price collapse and the economic growth in the case of Angola, Nigeria and Sudan, which confirmed the nexus between oil price collapse and economic growth. Post estimation tests such as Hausman and Breusch and Pagan Lagrange Multiplier Test were adopted to empirically show the consistency and efficiency of the model. Interestingly, the two key variables (GDPR and OPR) disclose how unprecedented oil price fall disrupts economic growth of the selected economies. Meanwhile, poor institutional quality in the oil sector coupled with poor fiscal measure among others, further expose these economies to unprecedented external shocks that was characterized by skyrocket exchange rate, hence destabilize growth within the period under review. Therefore, the need for a robust fiscal measure is pertinent in order to sustain economic growthhttps://online-journal.unja.ac.id/index.php/JES/article/view/4973EmpiricallyInvestigateEconomic growthNexusOil price collapseUni-directionalResponsiveness |
| spellingShingle | KEJI Sunday Anderu An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Empirically Investigate Economic growth Nexus Oil price collapse Uni-directional Responsiveness |
| title | An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies |
| title_full | An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies |
| title_fullStr | An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies |
| title_full_unstemmed | An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies |
| title_short | An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies |
| title_sort | empirical nexus between oil price collapse and economic growth in sub saharan african oil based economies |
| topic | Empirically Investigate Economic growth Nexus Oil price collapse Uni-directional Responsiveness |
| url | https://online-journal.unja.ac.id/index.php/JES/article/view/4973 |
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