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Modelling the Impact of Oil Price on Food Imports: Case of Oman

Author

Listed:
  • Sonal Devesh

    (Department Mathematics and Statistics, Faculty of Applied Science and Technology, Universiti Tun Hussein Onn, Malaysia.)

  • Abdullah M. Asrul Affendi

    (Department Mathematics and Statistics, Faculty of Applied Science and Technology, Universiti Tun Hussein Onn, Malaysia.)

Abstract

The purpose of this paper was to economically analyze and examine the causal relationship between food import bill and certain economic indicators in Oman during the period 1980 2019. The vector error correction model was used to assess the dynamics of food import bill. The finding indicates that food import bill in Oman is positively influenced by the population growth rate, and the GDP per capita, while oil prices showed a negative impact on food import bill. The error correction term suggesting 64 percent of the total disequilibrium in food import bill will be adjusted every year for any shock, justifiable for a dynamic economy like Oman.

Suggested Citation

  • Sonal Devesh & Abdullah M. Asrul Affendi, 2021. "Modelling the Impact of Oil Price on Food Imports: Case of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 113-120.
    • Handle: RePEc:eco:journ2:2021-04-15
    as

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    More about this item

    Keywords

    Food import bill; VECM; Granger causality; Oman; Oil Price; GDP; Population growth rate;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software

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