Oil price and economic growth of oil-importing countries: a review of international literature

Motunrayo O. Akinsola & Nicholas M. Odhiambo

Applied Econometrics and International Development2020review
ABDC C
Weight
0.75

What the paper says

This paper reviews the existing literature on the relationship between oil price and economic growth in oil-importing countries for developed, emerging and developing countries. It discusses the theoretical and empirical findings. The study finds that the impact of oil price on economic growth varies from country to country and over the periods of oil volatilities. Moreover, results from studies reviewed depend on methodology employed, the dataset and the country fixed effects. There is, however, a wide support for results of a negative relationship between oil price and economic growth, especially in developed countries. While studies showed a negative relationship during an increase in oil price, a decrease in oil price seems to have an insignificant relationship for developing countries. The causal relationship is also diverse across studies reviewed, ranging from unidirectional to bi-directional and feedback hypothesis. To our knowledge, this may be the first review of existing literature on the relationship between oil price and economic growth for oil-importing countries.

30 citations

Cite this paper

@article{motunrayo2020,
  title        = {{Oil price and economic growth of oil-importing countries: a review of international literature}},
  author       = {Motunrayo O. Akinsola & Nicholas M. Odhiambo},
  journal      = {Applied Econometrics and International Development},
  year         = {2020},
}

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Oil price and economic growth of oil-importing countries: a review of international literature

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Evidence weight

0.75

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact1.00 × 0.4 = 0.40
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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