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Effects of oil shocks on EMU exports: technological level differences

Author

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  • Hodula Martin

    (VŠB-Technical University of Ostrava, Economic Faculty, Department of Economics, Sokolská třída 33, 701 21 Ostrava, Czech Republic)

  • Vahalík Bohdan

    (VŠB-Technical University of Ostrava, Economic Faculty, Department of European Integration, Sokolská třída 33, 701 21 Ostrava, Czech Republic)

Abstract

This article provides some new empirical perspectives on the relationship between oil-market fluctuations and technological structure of EMU export. We rely on a time-varying parameter VAR model to capture the reaction of different technological structures of EMU export to various oil-market innovations in the period 2002-2015. Our results can be summarized as follows: (1) increase in crude oil production is likely to reduce oil prices and therefore increases all EMU exports due to lower production and transportation costs; (2) increase in global demand is more likely to be transmitted to goods with higher added value; (3) high-tech exports decrease in the first months after the global demand shock as a result of a delayed investment decision process; (4) increasing oil prices yield only marginal effect on EMU export.

Suggested Citation

  • Hodula Martin & Vahalík Bohdan, 2017. "Effects of oil shocks on EMU exports: technological level differences," Review of Economic Perspectives, Sciendo, vol. 17(4), pages 399-423, December.
    • Handle: RePEc:vrs:reoecp:v:17:y:2017:i:4:p:399-423:n:4
    DOI: 10.1515/revecp-2017-0021
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