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Oil-Abundance and Macroeconomic Performance in the GCC Countries

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  • Nabil Maalel

    (Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia and Ecole Sup rieure des Sciences Economiques et Commerciale de Tunis, University of Tunis)

  • Haider Mahmood

    (Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia.)

Abstract

Natural resource abundance and its reliance in terms of exports and national income of any resource-rich country may have positive or negative effect on the macroeconomic performance. This paper tests this issue in case of GCC countries by assuming the two proxies for oil dependency as income-dependence and exports-dependence and by using a period 1980-2016. For that purpose, we utilize the non-linear ARDL of Shin et al. (2014) to verify the possible asymmetrical effects of increasing and decreasing oil-dependency on economic growth. We find that the increasing income-dependence has pleasant effect and decreasing income-dependence has adverse effect on economic growth of most of GCC countries. Further, the increasing exports-dependence has adverse effect and decreasing oil-exports dependence has pleasant effect on economic growth of most of GCC countries. Furthermore, asymmetrical effects of increasing and decreasing oil-dependence on economic growth have been found in most of country cases.

Suggested Citation

  • Nabil Maalel & Haider Mahmood, 2018. "Oil-Abundance and Macroeconomic Performance in the GCC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 182-187.
  • Handle: RePEc:eco:journ2:2018-02-24
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    References listed on IDEAS

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    Cited by:

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    2. Tanveer, Muhammad & Hassan, Shafiqul & Mahmood, Haider & Khan, Syed Abdul Rehman, 2021. "The Use of Social Media by Managers During the Pandemic to Accomplish the Tasks," MPRA Paper 109249, University Library of Munich, Germany.
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    6. Belloumi, Mounir & Aljazea, Ahmed & Alshehry, Atef, 2023. "Study of the impact of crude oil prices on economic output and inflation in Saudi Arabia," Resources Policy, Elsevier, vol. 86(PA).
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    8. Destek, Mehmet Akif & Aydın, Sercan & Destek, Gamze, 2022. "Investigating an optimal resource dependency to prevent natural resource curse: Evidence from countries with the curse risk," Resources Policy, Elsevier, vol. 79(C).
    9. Khalid Abdullah Alkhathlan & Tarek Tawfik Yousef Alkhateeb & Haider Mahmood & Wardah Abdulrahman Bindabel, 2020. "Determinants of Diversification from Oil Sector in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 384-391.
    10. Nashat Ali Almasria & Hassan Hamad Aldboush & Omar Al-Kasasbeh & Abdalwali Lutfi & Fadya Burhan Alhajahmad & Thamir Al Barrak & Ghaith Alsheikh, 2024. "Oil Price Volatility and Economic Growth: Evidence from the Middle East," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 417-421, May.
    11. Al-Qahtani, Maleeha Mohammed Zaaf & Alkhateeb, Tarek Tawfik Yousef & Mahmood, Haider & Abdalla, Manal Abdalla Zahed & Mawad, Ghada Shihata Ebrahim & Alkhatib, Maha Ahmed Hussein, 2020. "Exploring the Level of Managerial, Political, Academic, Economic and Social Women Empowerment in Saudi Arabia," MPRA Paper 109447, University Library of Munich, Germany.
    12. Valery F. Anisimov & Yuri V. Truntsevsky & Valery V. Bessel & Saltanat Yessetova, 2020. "Prospects of Development of the Oil Industry in the Global Economy and in the Regional Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 265-279.
    13. Muhammad Tanveer & Harsandaldeep Kaur & George Thomas & Haider Mahmood & Mandakini Paruthi & Zhang Yu, 2021. "Mobile Phone Buying Decisions among Young Adults: An Empirical Study of Influencing Factors," Sustainability, MDPI, vol. 13(19), pages 1-18, September.
    14. Mahmood, Haider, 2018. "An Investigation of Macroeconomic Determinants of FDI Inflows in Bangladesh," MPRA Paper 109448, University Library of Munich, Germany.
    15. Tarek Tawfik Yousef Alkhateeb & Nasser Saad Alkahtani & Haider Mahmood, 2018. "Green Human Resource Management, Financial Markets and Pollution Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 33-36.
    16. Tarek Tawfik Yousef Alkhateeb & Haider Mahmood, 2020. "Oil Price and Capital Formation Nexus in GCC Countries: Asymmetry Analyses," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 146-151.
    17. Mahmood, Haider & Alkhateeb, Tarek Tawfik Yousef & Al-Qahtani, Maleeha Mohammed Zaaf & Allam, Zafrul Allam & Ahmad, Nawaz & Furqan, Maham, 2019. "Energy consumption, economic growth and pollution in Saudi Arabia," MPRA Paper 109143, University Library of Munich, Germany.
    18. Haider Mahmood & Tarek Tawfik Yousef Alkhateeb, 2018. "Foreign Direct Investment, Domestic Investment and Oil Price Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 147-151.
    19. Mahmood, Haider & Tanveer, Muhamamd & Ahmad, Abdul-Rahim & Furqan, Maham, 2021. "Rule of Law and Control of Corruption in Managing CO2 Emissions Issue in Pakistan," MPRA Paper 109250, University Library of Munich, Germany.
    20. N. P. Ravindra Deyshappriya & I. A. D. D. W. Rukshan & N. P. Dammika Padmakanthi, 2023. "Impact of Oil Price on Economic Growth of OECD Countries: A Dynamic Panel Data Analysis," Sustainability, MDPI, vol. 15(6), pages 1-14, March.
    21. Mahmood, Haider, 2020. "Level of Education and Renewable Energy Consumption Nexus in Saudi Arabia," MPRA Paper 109141, University Library of Munich, Germany.
    22. Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Maleeha Mohammed Zaaf Al-Qahtani & Zafrul Allam & Nawaz Ahmad & Maham Furqan, 2020. "Urbanization, Oil Price and Pollution in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 477-482.
    23. Tan, Yan & Uprasen, Utai, 2023. "Asymmetric effects of oil price shocks on income inequality in ASEAN countries," Energy Economics, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Oil Dependency; Economic Growth; GCC Countries; non-linear ARDL;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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