IDEAS home Printed from https://ideas.repec.org/a/asi/ijosaa/v4y2019i2p232-242id81.html
   My bibliography  Save this article

The Long Run Effects of Oil Prices on Economic Growth: The Case of Libya

Author

Listed:
  • Nagmi Moftah Aimer

Abstract

The aim of this paper is to study the impact of price shocks on economic growth in Libya using a sample of annual observations from 1990 to 2016. We apply autoregressive distributed lag (ARDL) models for the analysis of long-run relations between variables. Our estimates suggest that oil price increases have a statistically significant and positive effect on the economic growth of Libya. However, that the positive change 1% in the shock of crude oil prices has a positive impact on Libya's GDP by 0.29%. In addition, the error correction (ECM) results showed that 68% of the imbalance from the previous year's shock converges to the long-term equilibrium in the current year. Overall, the results indicate that crude oil prices have had a positive impact on economic growth in the long-term, while trade openness and imports have had a negative impact on economic growth. Finally, to overcome the impact of fluctuations in oil prices, long-term plans should be initiated to diversify the Libyan economy and gradually reduce dependence on the oil.

Suggested Citation

  • Nagmi Moftah Aimer, 2019. "The Long Run Effects of Oil Prices on Economic Growth: The Case of Libya," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 4(2), pages 232-242.
    • Handle: RePEc:asi:ijosaa:v:4:y:2019:i:2:p:232-242:id:81
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5051/article/view/81/158
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ijosaa:v:4:y:2019:i:2:p:232-242:id:81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5051/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.