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Impact of Crude Oil Price on Countries and Vietnam s GDP Growth: Variance Decomposition Approach

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  • Doan Van Dinh

    (Faculty of Finance and Banking, Industrial University of Ho Chi Minh City, Ho Chi Minh, Vietnam)

Abstract

The crude oil price fluctuation investigation is to explore the impact of crude oil price shocks on the countries economic growth. The Vector Autoregressive Model (VAR) was applied and the variance decomposition is to analyze the impact of the GDP growth due to the shock of the crude oil price. Besides, nine countries' data were collected from 1990 to the third quarter of 2020. The countries' GDP growth was impacted by the crude oil price in 5 years respectively: 44.98%; 40.03%; 31.06%; 32.27%; 33.21%; 36.03%; 27.79%; 15.35%; 40.75% of the following countries are: China; America; Japan; Korea; Singapore; Thailand; Indonesia; Vietnam; Malaysia. This study identifies issues for countries to consider: have a comprehensive solution among macroeconomic policies, monetary policy, fiscal policy and other policies to control and stimulate growth.

Suggested Citation

  • Doan Van Dinh, 2021. "Impact of Crude Oil Price on Countries and Vietnam s GDP Growth: Variance Decomposition Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 110-120.
    • Handle: RePEc:eco:journ2:2021-03-14
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Impulse response functions; Oil price stabilization fund; economic growth; cointegration method; macroeconomic policies.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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