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Asymmetric Oil Price Shocks and Economic Activity in Developing Oil-importing Economies: The Case of Jordan

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  • Noura Abu Asab

    (Department of Economics, Business School, University of Jordan, Amman, Jordan)

Abstract

The aim of this paper is to examine the asymmetric effect of oil price shocks on economic activity in Jordan, proxied by industrial production growth. Accommodating for non-linearity and employing different oil price shock measures, the findings suggest that positive oil shocks have a negative and significant effect on growth, while oil price declines have no impact on growth. This suggests that drops in oil prices are not necessarily an incentive for industrial growth in oil-importing countries. Based on symmetry specifications, oil price shocks and growth are found to be negatively correlated.

Suggested Citation

  • Noura Abu Asab, 2017. "Asymmetric Oil Price Shocks and Economic Activity in Developing Oil-importing Economies: The Case of Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 118-124.
    • Handle: RePEc:eco:journ1:2017-02-16
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Oil Shock; Jordan; Oil-importers; Non-linearities;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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