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A new look at the crude oil prices and economic growth nexus: asymmetric evidence from Alaska

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  • Jungho Baek

    (University of Alaska Fairbanks)

  • Taylor B. Young

    (University of Alaska Fairbanks)

Abstract

The existing research on the oil price-growth nexus in oil-exporting regions typically assumes that the oil price impacts are symmetric. In this article, therefore, we attempt to make an incremental contribution to the literature by empirically studying whether or not oil price changes have asymmetric impacts on economic growth in the case of an oil-exporting region, specifically Alaska. After applying the nonlinear autoregressive distributed lag (NARDL) method to quarterly data between 1998: Q1 and 2017: Q2, we uncover that oil price changes indeed asymmetrically affect Alaska’s economic growth in both the short and long run.

Suggested Citation

  • Jungho Baek & Taylor B. Young, 2021. "A new look at the crude oil prices and economic growth nexus: asymmetric evidence from Alaska," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 339-344, October.
    • Handle: RePEc:spr:minecn:v:34:y:2021:i:3:d:10.1007_s13563-020-00225-4
    DOI: 10.1007/s13563-020-00225-4
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    Cited by:

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    2. Jungho Baek, 2024. "Does Crude Oil Production Respond Differently to Oil Supply and Demand Shocks? Evidence from Alaska," Commodities, MDPI, vol. 3(1), pages 1-13, February.
    3. Lin, Shiwei & Wang, Yanan & Niu, Xiaojian & Dördüncü, Hazar, 2022. "Revisiting volatility in global natural resources commodities? Evidence from global data," Resources Policy, Elsevier, vol. 77(C).
    4. Bakhsh, Satar & Zhang, Wei, 2023. "How does natural resource price volatility affect economic performance? A threshold effect of economic policy uncertainty," Resources Policy, Elsevier, vol. 82(C).
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    6. Liu, Haiying & Alharthi, Majed & Atil, Ahmed & Zafar, Muhammad Wasif & Khan, Irfan, 2022. "A non-linear analysis of the impacts of natural resources and education on environmental quality: Green energy and its role in the future," Resources Policy, Elsevier, vol. 79(C).
    7. Sha, Zhiping, 2022. "Total natural resources, oil prices, and sustainable economic performance: Evidence from global data," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Alaska; Asymmetry; Nonlinear ARDL; Oil prices;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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