Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence

Volume: 5 Number: 1 March 1, 2015
  • José Alberto Fuinhas
  • António Cardoso Marques
  • Alcino Pinto Couto
EN

Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence

Abstract

The oil consumption-economic growth nexus is examined in a panel of oil producing countries over a long time span (1965-2012). Both, the ratio of oil production to primary energy consumption, i.e. oil self-sufficiency, and the persistence of the second structural oil shock were controlled for. The phenomenon of cross-sectional dependence that is present in the panel confirms that these countries share common spatial patterns, unobserved common factors, or both. The cointegration/long memory relationships as well as the panel data estimators’ appropriateness are analysed and discussed. A dynamic Driscoll-Kraay estimator, with fixed effects, was shown to be adequate to cope with the phenomena of heteroskedasticity, contemporaneous correlation, first order autocorrelation and cross-sectional dependence present in the panel. The results are consistent with the growth hypothesis, i.e. that oil consumption proves be a driver of economic growth. The second structural oil break (1979), reveals the long-lasting positive effect exerted by oil consumption on growth. The ratio of oil production to primary energy consumption has exerted a positive impact on growth. Thus, policymakers should take into account the benefits of promoting oil self-sufficiency, by reinforcing the use of endogenous resources

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

José Alberto Fuinhas This is me

António Cardoso Marques This is me

Alcino Pinto Couto This is me

Publication Date

March 1, 2015

Submission Date

March 1, 2015

Acceptance Date

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Published in Issue

Year 2015 Volume: 5 Number: 1

APA
Fuinhas, J. A., Marques, A. C., & Couto, A. P. (2015). Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence. International Journal of Energy Economics and Policy, 5(1), 148-163. https://izlik.org/JA38LS89WL
AMA
1.Fuinhas JA, Marques AC, Couto AP. Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence. IJEEP. 2015;5(1):148-163. https://izlik.org/JA38LS89WL
Chicago
Fuinhas, José Alberto, António Cardoso Marques, and Alcino Pinto Couto. 2015. “Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence”. International Journal of Energy Economics and Policy 5 (1): 148-63. https://izlik.org/JA38LS89WL.
EndNote
Fuinhas JA, Marques AC, Couto AP (March 1, 2015) Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence. International Journal of Energy Economics and Policy 5 1 148–163.
IEEE
[1]J. A. Fuinhas, A. C. Marques, and A. P. Couto, “Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence”, IJEEP, vol. 5, no. 1, pp. 148–163, Mar. 2015, [Online]. Available: https://izlik.org/JA38LS89WL
ISNAD
Fuinhas, José Alberto - Marques, António Cardoso - Couto, Alcino Pinto. “Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence”. International Journal of Energy Economics and Policy 5/1 (March 1, 2015): 148-163. https://izlik.org/JA38LS89WL.
JAMA
1.Fuinhas JA, Marques AC, Couto AP. Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence. IJEEP. 2015;5:148–163.
MLA
Fuinhas, José Alberto, et al. “Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence”. International Journal of Energy Economics and Policy, vol. 5, no. 1, Mar. 2015, pp. 148-63, https://izlik.org/JA38LS89WL.
Vancouver
1.José Alberto Fuinhas, António Cardoso Marques, Alcino Pinto Couto. Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence. IJEEP [Internet]. 2015 Mar. 1;5(1):148-63. Available from: https://izlik.org/JA38LS89WL