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The threshold effect of oil-price shocks on economic growth

Author

Listed:
  • Nabil Alimi

    (University of Tunis el Manar , Faculty of Economic Sciences and Management of Tunis)

  • Nabil Aflouk

    (University of Jendouba, Faculty of Law, Economics and Management of Jendouba)

Abstract

This paper investigates the effects of positive and negative oil price shocks on economic growth in GCC economies over the period 1980 - 2015, using the Panel Smooth Transition Regression (PSTR) model. The findings confirm that firstly, the relationship between economic growth and oil price shocks is non-linear and it is characterized by the presence of a threshold effect. Secondly, the effect of the oil price shock is larger than as long as it is below the threshold level.

Suggested Citation

  • Nabil Alimi & Nabil Aflouk, 2017. "The threshold effect of oil-price shocks on economic growth," Economics Bulletin, AccessEcon, vol. 37(3), pages 1942-1958.
    • Handle: RePEc:ebl:ecbull:eb-17-00234
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    References listed on IDEAS

    as
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    Cited by:

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    5. Léleng Kebalo, 2020. "Effects of oil price shocks on economic sectors of net oil-importing countries: case of Togo," Post-Print hal-03157689, HAL.

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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