IDEAS home Printed from https://ideas.repec.org/a/asi/ajemod/v2y2014i4p169-177id831.html
   My bibliography  Save this article

Oil Prices Fluctuations & Its Impact on Russians Economy; An Exchange Rate Exposure

Author

Listed:
  • Khuram Shafi
  • Liu Hua

Abstract

Countries suffering from a shortage of oil reserves or importing oil are trying to reduce the oil consumption. But this can be only possible if alternatives of oil reserves are available. The factors affecting exchange rate are inflation, interest rate, foreign direct investment, government consumption expenditure and balance of trade. This paper seeks to identify the impact of oil prices and risk exposure of exchange rate volatility on economic growth in Russian economy on annual data of from year 1971 to 2012. Based on results it is estimated that imports, exports, inflation, interest rate, government consumption expenditure and foreign direct investment has a significant impact on real effective exchange rate in the long run and short run. Secondly, Engle Granger results indicate that relationship is significant in the long run and its error correction adjustment mechanism in short runs is significant and correctly signed for Russia.

Suggested Citation

  • Khuram Shafi & Liu Hua, 2014. "Oil Prices Fluctuations & Its Impact on Russians Economy; An Exchange Rate Exposure," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(4), pages 169-177.
    • Handle: RePEc:asi:ajemod:v:2:y:2014:i:4:p:169-177:id:831
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5009/article/view/831/1278
    Download Restriction: no
    ---><---

    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:asi:ajemod:v:2:y:2014:i:4:p:169-177:id:831. 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: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5009/ .

    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.