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Effects of Oil and Natural Gas Prices on Industrial Production in the Eurozone Member Countries

Author

Listed:
  • Yýlmaz BAYAR

    (Department of Business Administration, Faculty of Business Administration, Karabuk University, Turkey.)

  • Cuneyt KILIC

    (Department of Economics, Biga Faculty of Economics and Administrative Sciences, Canakkale Onsekiz Mart University, Turkey.)

Abstract

Industrial production is one of the leading indicators of gross domestic product which reflects the overall economic performance of a country. In other words decreases or increases in industrial production point out a contracting or expanding economy. Therefore, changes in prices of oil and natural gas which are the crucial inputs to the industrial production are also important for the overall economy. This study examines the effects of changes in oil and natural gas prices on the industrial production in the 18 Eurozone member countries during the period January 2001-September 2013 by using panel regression. We found that oil prices and natural gas prices had negative effect on industrial production in the Eurozone member countries.

Suggested Citation

  • Yýlmaz BAYAR & Cuneyt KILIC, 2014. "Effects of Oil and Natural Gas Prices on Industrial Production in the Eurozone Member Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 238-247.
  • Handle: RePEc:eco:journ2:2014-02-14
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    References listed on IDEAS

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    1. repec:eee:eneeco:v:67:y:2017:i:c:p:83-90 is not listed on IDEAS

    More about this item

    Keywords

    Oil Prices; Natural Gas Prices; Industrial Production; Eurozone Member Countries; Panel Data Analysis.;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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