IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v12y2021i1p279-285.html
   My bibliography  Save this article

The Effects of COVID-19 Pandemic on the Economies of the Gulf Cooperation Council States due to Low Oil Prices

Author

Listed:
  • Khaled Abdalla Moh'd AL-Tamimi

Abstract

This paper shows the effect of a drop in oil price on the economic growth of GCC states as a result of the Covid-19 pandemic using monthly data for (2019/2020 M1 ¨C 2019/2020 M12) where oil price is an explanatory variable and economic growth is the affected variable. Because the economies of the GCC countries are centered mostly on oil, the spread of COVID-19 pandemic has become a serious concern since they depend on the outside world in diverse ways. The confirmed number of cases in the GCC countries is eliciting fear about security in these countries. This paper focuses on analyzing theoretical and empirical literature reviews to show the effects of oil price on economic growth and explaining this effect in GCC states for this period using the autoregressive distributed lag (ARDL) technique in Eviews program. This paper concluded that there are negative and significant effects of oil price on the economic growth of Kuwait and Qatar, but insignificant effects of oil price on the economic growth of Bahrain, Oman and the United Arab Emirates and a positive and significant effect of oil price on the economic growth of Saudi Arabia by using monthly data for (2019/2020 M1 ¨C 2019/2020 M12) at a significance level of 5%. Also, this paper reaches a recommendation of the GCC states to improve their economies through other sectors and not by relying on oil to enhance their economic growth.

Suggested Citation

  • Khaled Abdalla Moh'd AL-Tamimi, 2021. "The Effects of COVID-19 Pandemic on the Economies of the Gulf Cooperation Council States due to Low Oil Prices," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 279-285, January.
    • Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:1:p:279-285
    DOI: 10.5430/ijfr.v12n1p279
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/19829/12137
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/19829
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v12n1p279?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Claudiu Tiberiu Albulescu, 2020. "Do COVID-19 and crude oil prices drive the US economic policy uncertainty?," Working Papers hal-02509450, HAL.
    2. Claudiu Albulescu, 2020. "Coronavirus and oil price crash," Papers 2003.06184, arXiv.org, revised Mar 2020.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krzysztof Dmytrów & Joanna Landmesser & Beata Bieszk-Stolorz, 2021. "The Connections between COVID-19 and the Energy Commodities Prices: Evidence through the Dynamic Time Warping Method," Energies, MDPI, vol. 14(13), pages 1-23, July.
    2. Garafas, Georgios & Dimitriou, Dimitrios, 2020. "The Ides Of March. Did Italian Covid-19 Crisis Fuel Us Economic Policy Uncertainty?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(4), pages 511-524.
    3. Benzid, Lamia & Bakari, Sayef, 2021. "Modeling the Asymmetric Relationship between the Covid-19 and the U.S Dollar Exchange Rate: an Empirical Analysis via the NARDL Approach," MPRA Paper 105566, University Library of Munich, Germany.
    4. Apostolakis, George N. & Floros, Christos & Gkillas, Konstantinos & Wohar, Mark, 2021. "Financial stress, economic policy uncertainty, and oil price uncertainty," Energy Economics, Elsevier, vol. 104(C).
    5. Yating, Yang & Mughal, Nafeesa & Wen, Jun & Thi Ngan, Truong & Ramirez-Asis, Edwin & Maneengam, Apichit, 2022. "Economic performance and natural resources commodity prices volatility: Evidence from global data," Resources Policy, Elsevier, vol. 78(C).
    6. Yang, Tianle & Zhou, Fangxing & Du, Min & Du, Qunyang & Zhou, Shirong, 2023. "Fluctuation in the global oil market, stock market volatility, and economic policy uncertainty: A study of the US and China," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 377-387.
    7. Ștefan Cristian Gherghina & Daniel Ștefan Armeanu & Camelia Cătălina Joldeș, 2020. "Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis," IJERPH, MDPI, vol. 17(18), pages 1-35, September.
    8. Beata Bieszk-Stolorz & Krzysztof Dmytrów, 2022. "Assessment of the Similarity of the Situation in the EU Labour Markets and Their Changes in the Face of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(6), pages 1-20, March.
    9. Clement Moyo & Izunna Anyikwa & Andrew Phiri, 2023. "The Impact of Covid-19 on Oil Market Returns: Has Market Efficiency Being Violated?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 118-127, January.
    10. Imen Gam, 2022. "Does a sanitary crisis drive oil prices and carbon emissions in the USA? Evidence from VECM modeling," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 10616-10632, September.
    11. Hillary C. Ezeaku & Simplice A. Asongu, 2020. "Covid-19 and Cacophony of coughing: Did International commodity Prices catch influenza?," Working Papers 20/040, European Xtramile Centre of African Studies (EXCAS).
    12. Bourghelle, David & Jawadi, Fredj & Rozin, Philippe, 2021. "Oil price volatility in the context of Covid-19," International Economics, Elsevier, vol. 167(C), pages 39-49.
    13. Mensi, Walid & Rehman, Mobeen Ur & Vo, Xuan Vinh, 2022. "Impacts of COVID-19 outbreak, macroeconomic and financial stress factors on price spillovers among green bond," International Review of Financial Analysis, Elsevier, vol. 81(C).
    14. Dr. Neha SETH & Deepti SINGH, 2023. "The Asian Stock Market’s reaction to Covid outbreak: an empirical Insights from ARDL approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(637), W), pages 243-256, Winter.
    15. Ugur Korkut Pata, 2020. "COVID-19 Induced Economic Uncertainty: A Comparison between the United Kingdom and the United States," Papers 2007.07839, arXiv.org.
    16. Shehabi, Manal, 2022. "Modeling long-term impacts of the COVID-19 pandemic and oil price declines on Gulf oil economies," Economic Modelling, Elsevier, vol. 112(C).
    17. Ahmad, Shakil, 2021. "Does COVID-19 effects the United States crude oil imports price?," Economic Consultant, Roman I. Ostapenko, vol. 33(1), pages 57-67.
    18. Ibrahim Yousef & Esam Shehadeh, 2020. "The Impact of COVID-19 on Gold Price Volatility," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 353-364.
    19. Güngör, Bekir Oray & Ertuğrul, H. Murat & Soytaş, Uğur, 2021. "Impact of Covid-19 outbreak on Turkish gasoline consumption," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    20. You‐How Go & Jia‐Jun Teo & Kam Fong Chan, 2023. "The effectiveness of crude oil futures hedging during infectious disease outbreaks in the 21st century," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 43(11), pages 1559-1575, November.

    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:jfr:ijfr11:v:12:y:2021:i:1:p:279-285. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    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.