The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations

Cilt: 7 Sayı: 1 1 Mart 2017
  • Abdulaziz Hamad Algaeed
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The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations

Abstract

The purpose of this paper is to analyze theoretically and empirically the relationship between the asymmetric oil price shock and the consumption in Saudi Arabia for the period 1985-2015.This paper follows Mehra and Petersen (2005), Zhang and Broadstock (2014), and has added a new perspective through which the oil price shocks are transmitted to consumption in the Saudi economy. The oil price shock is calculated, as SOPI, using GARCH (1,1). VAR and VEC models are applied, and the findings confirm that the oil price shocks affect positively ( +) the earnings of oil, and thereby total consumption. An increase in oil price will cause an increase in revenues, and hence consumption and vice versa. However, the decline in oil revenue on average is about (-21) percent, whereas the fall in consumption is about (-24) percent. These results coincide with the causality tests. Although, Mehra and Petersen (2005) found negative impacts of oil price shocks, our results differ in sign because this work is concerning an oil-exporting country

Keywords

Ayrıntılar

Birincil Dil

İngilizce

Konular

-

Bölüm

-

Yazarlar

Abdulaziz Hamad Algaeed Bu kişi benim

Yayımlanma Tarihi

1 Mart 2017

Gönderilme Tarihi

1 Mart 2017

Kabul Tarihi

-

Yayımlandığı Sayı

Yıl 2017 Cilt: 7 Sayı: 1

Kaynak Göster

APA
Algaeed, A. H. (2017). The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations. International Journal of Energy Economics and Policy, 7(1), 99-107. https://izlik.org/JA44ZN75EC
AMA
1.Algaeed AH. The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations. IJEEP. 2017;7(1):99-107. https://izlik.org/JA44ZN75EC
Chicago
Algaeed, Abdulaziz Hamad. 2017. “The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations”. International Journal of Energy Economics and Policy 7 (1): 99-107. https://izlik.org/JA44ZN75EC.
EndNote
Algaeed AH (01 Mart 2017) The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations. International Journal of Energy Economics and Policy 7 1 99–107.
IEEE
[1]A. H. Algaeed, “The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations”, IJEEP, c. 7, sy 1, ss. 99–107, Mar. 2017, [çevrimiçi]. Erişim adresi: https://izlik.org/JA44ZN75EC
ISNAD
Algaeed, Abdulaziz Hamad. “The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations”. International Journal of Energy Economics and Policy 7/1 (01 Mart 2017): 99-107. https://izlik.org/JA44ZN75EC.
JAMA
1.Algaeed AH. The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations. IJEEP. 2017;7:99–107.
MLA
Algaeed, Abdulaziz Hamad. “The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations”. International Journal of Energy Economics and Policy, c. 7, sy 1, Mart 2017, ss. 99-107, https://izlik.org/JA44ZN75EC.
Vancouver
1.Abdulaziz Hamad Algaeed. The Effects of Asymmetric Oil Price Shocks on the Saudi Consumption: An Empirical Investigations. IJEEP [Internet]. 01 Mart 2017;7(1):99-107. Erişim adresi: https://izlik.org/JA44ZN75EC