Reverse Globalization: Does High Oil Price Volatility Discourage International Trade?
AbstractThis paper examines whether higher oil price volatility causes a reversal in globalization. Using a large annual panel data set covering 84 countries all over the world from 1984 to 2008, we investigate the impacts of oil price fluctuations on international trade, namely exports and imports. We present strong and robust evidence that international trade flows will be lower when oil prices fluctuate significantly. We therefore conclude that oil price volatility hurts globalization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36182.
Date of creation: 25 Jan 2012
Date of revision:
oil price shocks; oil price volatility; international trade; reverse globalization;
Other versions of this item:
- Chen, Shiu-Sheng & Hsu, Kai-Wei, 2012. "Reverse globalization: Does high oil price volatility discourage international trade?," Energy Economics, Elsevier, vol. 34(5), pages 1634-1643.
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-BEC-2012-02-20 (Business Economics)
- NEP-ENE-2012-02-20 (Energy Economics)
- NEP-INT-2012-02-20 (International Trade)
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