Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries
This paper aimed at examining the long run relationship between the oil price change and economic growth for Sub-Saharan Africa (SSA) net oil exporters (Angola, Cameroon, Congo (Democratic Republic), Congo (The Republic), Equatorial Guinea, Gabon and Nigeria) with the sole purpose of pinpointing the...
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| Format: | Article |
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Econjournal
2022
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| _version_ | 1825938695762477056 |
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| author | Babuga, Umar Tijjani Mohd Naseem, Niaz Ahmad |
| author_facet | Babuga, Umar Tijjani Mohd Naseem, Niaz Ahmad |
| author_sort | Babuga, Umar Tijjani |
| collection | UPM |
| description | This paper aimed at examining the long run relationship between the oil price change and economic growth for Sub-Saharan Africa (SSA) net oil exporters (Angola, Cameroon, Congo (Democratic Republic), Congo (The Republic), Equatorial Guinea, Gabon and Nigeria) with the sole purpose of pinpointing the threshold level where an increase beyond that is no longer or even contributing negatively to the economic growth of these countries. Based on the dynamic heterogenous panel PMG estimation, the empirical results show that a threshold level exists between oil price increase and economic growth for these countries, where an increase in oil price (op2) depicts a negative sign which is non-linear and at the same time signifying an inverted u shape relationship with the real GDP (rgdpc) as an indicator of economic growth. As the finding suggested, the rising oil price above certain threshold triggers fall in real GDP. However, the economies of these countries depend largely on oil revenue, therefore, economic diversification, saving and investing the excess of crude oil revenue at the time of higher oil prices became necessary to them in order to prevent their economies against the vagaries of volatility and uncertainty of the oil price. |
| first_indexed | 2024-03-06T11:17:16Z |
| format | Article |
| id | upm.eprints-102366 |
| institution | Universiti Putra Malaysia |
| last_indexed | 2024-03-06T11:17:16Z |
| publishDate | 2022 |
| publisher | Econjournal |
| record_format | dspace |
| spelling | upm.eprints-1023662023-05-22T03:45:43Z http://psasir.upm.edu.my/id/eprint/102366/ Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries Babuga, Umar Tijjani Mohd Naseem, Niaz Ahmad This paper aimed at examining the long run relationship between the oil price change and economic growth for Sub-Saharan Africa (SSA) net oil exporters (Angola, Cameroon, Congo (Democratic Republic), Congo (The Republic), Equatorial Guinea, Gabon and Nigeria) with the sole purpose of pinpointing the threshold level where an increase beyond that is no longer or even contributing negatively to the economic growth of these countries. Based on the dynamic heterogenous panel PMG estimation, the empirical results show that a threshold level exists between oil price increase and economic growth for these countries, where an increase in oil price (op2) depicts a negative sign which is non-linear and at the same time signifying an inverted u shape relationship with the real GDP (rgdpc) as an indicator of economic growth. As the finding suggested, the rising oil price above certain threshold triggers fall in real GDP. However, the economies of these countries depend largely on oil revenue, therefore, economic diversification, saving and investing the excess of crude oil revenue at the time of higher oil prices became necessary to them in order to prevent their economies against the vagaries of volatility and uncertainty of the oil price. Econjournal 2022-03-20 Article PeerReviewed Babuga, Umar Tijjani and Mohd Naseem, Niaz Ahmad (2022) Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries. International Journal of Energy Economics and Policy, 12 (42). 369 - 378. ISSN 2146-4553 https://www.econjournals.com/index.php/ijeep/article/view/12932 10.32479/ijeep.12932 |
| spellingShingle | Babuga, Umar Tijjani Mohd Naseem, Niaz Ahmad Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title | Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title_full | Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title_fullStr | Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title_full_unstemmed | Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title_short | Oil price change and economic growth: evidence from Net Sub-Saharan Africa oil exporting countries |
| title_sort | oil price change and economic growth evidence from net sub saharan africa oil exporting countries |
| work_keys_str_mv | AT babugaumartijjani oilpricechangeandeconomicgrowthevidencefromnetsubsaharanafricaoilexportingcountries AT mohdnaseemniazahmad oilpricechangeandeconomicgrowthevidencefromnetsubsaharanafricaoilexportingcountries |