IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-06-6.html
   My bibliography  Save this article

The Impact of Oil Prices on the Global Competitiveness of National Economies

Author

Listed:
  • Bulat Mukhamediyev

    (Department of Economics, Al-Farabi Kazakh National University, Almaty, Kazakhstan.)

  • Zhansaya Temerbulatova

    (Department of Economics, Al-Farabi Kazakh National University, Almaty, Kazakhstan.)

Abstract

The influence of various factors on the competitiveness of national economies is investigated in many articles, however, there is little research on the impact of resource prices on it. This article aims to examine the effect of crude oil prices on the global competitiveness of both producing countries and countries consuming oil. Based on annual data from 60 countries for 2006 2017, a regression analysis of panel data with fixed effects shows that exceeding the annual growth rate of oil prices over GDP growth rates reduces the growth rate of the global competitiveness index, and it is twice strong for oil exporting countries than for countries non-oil exporters. And the growth of average labor productivity, total factor productivity, the share of employed in the total population, High-technology exports, and the Gross capital formation raises the country's global competitiveness index. Due to the rise in world oil prices, exporting countries are moving downward in the global competitiveness ranking more than non-oil exporters.

Suggested Citation

  • Bulat Mukhamediyev & Zhansaya Temerbulatova, 2019. "The Impact of Oil Prices on the Global Competitiveness of National Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 45-50.
    • Handle: RePEc:eco:journ2:2019-06-6
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/8089/4631
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/8089/4631
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. La Ode Saidi & Pasrun Adam & Manat Rahim & Rosnawintang Rosnawintang, 2019. "The Effect of Crude Oil Prices on Economic Growth in South East Sulawesi, Indonesia: An Application of Autoregressive Distributed Lag Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 194-198.
    2. Nazim Hajiyev & Ali Rustamov, 2019. "How Oil Price Drops are Reflected by Imported Inflation in Azerbaijan?," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 182-193.
    3. Omer Ali Ibrahim & Sonal Devesh & Hisham Mohamed Hassan, 2019. "Sensitivity of Fiscal Balances to Oil Price Shocks: Short and Long Term Effects in the Context of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 146-155.
    4. E. Carayannis & E. Grigoroudis, 2014. "Linking innovation, productivity, and competitiveness: implications for policy and practice," The Journal of Technology Transfer, Springer, vol. 39(2), pages 199-218, April.
    5. Florian Flachenecker, 2018. "The causal impact of material productivity on macroeconomic competitiveness in the European Union," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 17-46, January.
    6. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 39-51, Autumn.
    7. Akhmad Akhmad & Buyung Romadhoni & Kasnaeny Karim & Muhammad Jibril Tajibu & Muhammad Syukur, 2019. "The Impact of Fuel Oil Price Fluctuations on Indonesia s Macro Economic Condition," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 277-282.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sugra Humbatova & Ibrahim Guliyev Gadim & Sabuhi Tanriverdiyev Mileddin & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Consumer Market: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 202-215, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohsen Mohammadi Khyareh & Nasrin Rostami, 2022. "Macroeconomic Conditions, Innovation and Competitiveness," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1321-1340, June.
    2. Coppola, A. & Ianuario, S. & Chinnici, G. & Di Vita, G. & Pappalardo, G. & D'Amico, D., 2018. "Endogenous and Exogenous Determinants of Agricultural Productivity: What Is the Most Relevant for the Competitiveness of the Italian Agricultural Systems?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    3. Tetiana Kornieieva & Miguel Varela & Ana Lúcia Luís & Natália Teixeira, 2022. "Assessment of Labour Productivity and the Factors of Its Increase in European Union 27 and Ukrainian Economies," Economies, MDPI, vol. 10(11), pages 1-25, November.
    4. Baldwin, John & Lin, Zhengxi, 2002. "Impediments to advanced technology adoption for Canadian manufacturers," Research Policy, Elsevier, vol. 31(1), pages 1-18, January.
    5. Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Summary and Conclusions," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 24, pages 317-333, Economic and Social Research Institute (ESRI).
      • Baker, Terence J. & FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Summary and Conclusions," Book Chapters, in: Baker, Terence J. (ed.),Economic Implications for Ireland of EMU, chapter 12, pages 339-352, Economic and Social Research Institute (ESRI).
    6. Tamara P. Danko & Vladimir M. Kiselev & Lyubov A. Chaykovskaya & Pavel A. Smelov & Anna E. Gorokhova, 2020. "Marketing positioning of countries in the field of innovations: questions and answers," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2851-2862, June.
    7. Pegkas, Panagiotis & Staikouras, Christos & Tsamadias, Constantinos, 2019. "Does research and development expenditure impact innovation? Evidence from the European Union countries," Journal of Policy Modeling, Elsevier, vol. 41(5), pages 1005-1025.
    8. Ülengin, Füsun & Kabak, Özgür & Önsel, Sule & Aktas, Emel & Parker, Barnett R., 2011. "The competitiveness of nations and implications for human development," Socio-Economic Planning Sciences, Elsevier, vol. 45(1), pages 16-27, March.
    9. Beata K. Bierut & Piot Dybka, 2019. "Institutional determinants of export competitiveness among the EU countries: evidence from Bayesian model averaging," KAE Working Papers 2019-043, Warsaw School of Economics, Collegium of Economic Analysis.
    10. Robert Huggins & Hiro Izushi, 2013. "Knowledge-based Development in Leading Regions across the Globe: An Exploratory Analysis of the co-Evolution of Resources, Capabilities and Outputs," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 1030-1048, April.
    11. Robert Huggins & Hiro Izushi, 2009. "Regional Benchmarking in a Global Context: Knowledge, Competitiveness, and Economic Development," Economic Development Quarterly, , vol. 23(4), pages 275-293, November.
    12. Ebi, Bassey Okon & Aladejare, Samson Adeniyi, 2022. "Oil Price Transmission, Deficit Financing and Capital Formation," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 123-133.
    13. Aswini Kumar Mishra & Ganesh Rao & Aashima Monga & Bhargav Vishwanath, 2016. "Assessing Competitiveness in Emerging Asian Economies: Role of Governance and Infrastructure and Lessons for India," Emerging Economy Studies, International Management Institute, vol. 2(1), pages 72-90, May.
    14. Giorgio Calcagnini & Ilario Favaretto, 2016. "Models of university technology transfer: analyses and policies," The Journal of Technology Transfer, Springer, vol. 41(4), pages 655-660, August.
    15. Jakob B. Madsen, 2004. "Technological Revolutions, Innovations, and Trade Performance," EPRU Working Paper Series 04-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    16. Falkowski Krzysztof, 2017. "Long-Term Comparative Advantages of the Eurasian Economic Union Member States in International Trade," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(4), pages 27-49, December.
    17. Mónica Eliana FLÓREZ BUSTAMANTE, 2016. "Índices de Competitividad para las Principales Ciudades en Colombia," Archivos de Economía 15058, Departamento Nacional de Planeación.
    18. Črt Lenarčič, 2019. "Unit Labour Cost and Unit Capital Cost Indicators in Slovenia and the Other Euro Area Countries," Journal of Innovative Business and Management, DOBA Faculty, vol. 11(2).
    19. Hugues Jennequin & Luis Miotti & El Mouhoub Mouhoud, 2017. "Measurement and anticipation of territorial vulnerability to offshoring risks : An analysis on sectoral data for France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 497-498, pages 123-144.
    20. Morgenroth, Edgar & FitzGerald, John (ed.), 2006. "Ex-ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013," Research Series, Economic and Social Research Institute (ESRI), number PRS59, June.

    More about this item

    Keywords

    oil price; global competitiveness index; panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • F6 - International Economics - - Economic Impacts of Globalization
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    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:eco:journ2:2019-06-6. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.