IDEAS home Printed from https://ideas.repec.org/h/spr/aaechp/978-3-319-97913-7_8.html
   My bibliography  Save this book chapter

Macroeconomic Effects of Commodity Price Shocks on ECOWAS Members

In: The External Sector of Africa's Economy

Author

Listed:
  • Moses K. Tule

    (Central Bank of Nigeria)

  • Udoma J. Afangideh

    (Central Bank of Nigeria)

  • Adegoke I. Adeleke

    (Central Bank of Nigeria)

  • Augustine Ujunwa

    (Central Bank of Nigeria)

Abstract

The current global commodity price shocks have generally affected many commodity dependent countries and also raised serious questions on the viability of regional blocks whose member countries are predominantly commodity-based economies. ECOWAS sub-region typifies evidence of primary export as the main source of foreign exchange to member countries, thereby making them susceptible to commodity price shocks. This paper examines the effect of commodity price shocks on ECOWAS member countries using a panel data of 13 member countries for the period 2000–2015. Dynamic General Method of Moment (GMM) technique was adopted using an instrumental variable (IV) regression model. The results showed that precious metals were positively but insignificantly related to gross domestic product per capita which the study adopted as a measure of macroeconomic indicator. Also, there was a positive and statistically significant relationship between energy prices and the dependent variable. However, a negative relationship was observed between non-energy prices and gross domestic product per capita. In addition, the results showed that 87% of the economy is susceptible to energy price shocks. This result forces a rethink of the integration agenda not only along monetary lines, but also along diversification integration.

Suggested Citation

  • Moses K. Tule & Udoma J. Afangideh & Adegoke I. Adeleke & Augustine Ujunwa, 2019. "Macroeconomic Effects of Commodity Price Shocks on ECOWAS Members," Advances in African Economic, Social and Political Development, in: Diery Seck (ed.), The External Sector of Africa's Economy, pages 163-184, Springer.
    • Handle: RePEc:spr:aaechp:978-3-319-97913-7_8
    DOI: 10.1007/978-3-319-97913-7_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boateng, Elliot & Agbola, Frank W. & Mahmood, Amir, 2021. "Foreign aid volatility and economic growth in Sub-Saharan Africa: Does institutional quality matter?," Economic Modelling, Elsevier, vol. 96(C), pages 111-127.
    2. Cham, Yaya, 2023. "Monetary Approach to Balance of Payments: Empirical Evidence from ECOWAS Countries," MPRA Paper 118374, University Library of Munich, Germany.

    More about this item

    Keywords

    Energy prices; Panel analysis; ECOWAS;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    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:spr:aaechp:978-3-319-97913-7_8. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.