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Economic Growth, Oil Consumption and Import Intensity: Factor Decomposition of Imported Crude Oil Model Approach

Author

Listed:
  • Cheng-Yih Hong

    (Faculty of Finance, Chaoyang University of Technology, Taiwan,)

  • Chen-Jung Hsu

    (Department of Business Administration, Chaoyang University of Technology, Taiwan)

Abstract

Taiwan became a member of the WTO in 2002. Trade is the engine of growth in Taiwan, accounting for nearly 96.41% of GDP in 2016. Taiwan's economy is highly export-oriented. On the other hand, Taiwan depends on imports for near 98 percent of its energy consumption. This paper analyzes the changes in the intensity of crude oil imports between 1981 and 2016. This research sets several main topics: i) Estimating the imported crude oil intensity of final demand for a quantity analysis. ii) Measure of imported crude oil intensity of final demand. iii) Factor decomposition model for the imported crude oil intensity of final demand. iv) The study could provide an understanding of the properties and production technologies of various industries. The result shows that imported goods intensity is the largest in the crude oil and gas sector. Changes in imported crude oil intensity factors mainly from domestic production structure and final demand structure.

Suggested Citation

  • Cheng-Yih Hong & Chen-Jung Hsu, 2018. "Economic Growth, Oil Consumption and Import Intensity: Factor Decomposition of Imported Crude Oil Model Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 152-156.
    • Handle: RePEc:eco:journ2:2018-04-20
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    References listed on IDEAS

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    Cited by:

    1. Zhijuan Zhang & Marcin Lis, 2020. "Modeling Green Energy Development Based on Sustainable Economic Growth in China," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    2. Cheng-Yih Hong & Yu-Shuang Yen & Tsai-Rong Lee, 2019. "The Spillover Effects of Investment, Economic Growth and Electricity Consumption: An Application Mathematical Dynamic Industry-Related Models Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 313-319.
    3. Valery F. Anisimov & Yuri V. Truntsevsky & Valery V. Bessel & Saltanat Yessetova, 2020. "Prospects of Development of the Oil Industry in the Global Economy and in the Regional Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 265-279.

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    More about this item

    Keywords

    Economic growth; Imported Crude Oil intensity; Factor Decomposition;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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