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Oil Price Uncertainty, Globalization, and Total Factor Productivity: Evidence from the European Union

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  • Svetlana Balashova

    (Department of Economic and Mathematical Modelling, Peoples Friendship University of Russia (RUDN University), 6 Miklukho-Maklaya St, 117198 Moscow, Russia)

  • Apostolos Serletis

    (Department of Economics, University of Calgary, Calgary, AB T2N 1N4, Canada)

Abstract

This paper uncovers linkages between oil price uncertainty, total factor productivity (TFP) growth, and critical indicators of knowledge production and spillovers. It contributes to the literature by investigating the effects of oil price volatility on TFP growth, controlling for two different channels for TFP growth; benefits from the quality of the national innovation system and from adopting new technologies. We use an unbalanced panel for 28 European Union countries for the period from 1990 to 2018. We find that oil price uncertainty has a negative and statistically significant effect on TFP growth, even after we control for technological advancements and the effects of globalization. We also find that the scale of research and innovation and international trade are positive contributors to TFP growth.

Suggested Citation

  • Svetlana Balashova & Apostolos Serletis, 2021. "Oil Price Uncertainty, Globalization, and Total Factor Productivity: Evidence from the European Union," Energies, MDPI, vol. 14(12), pages 1-11, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:12:p:3429-:d:572365
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    Cited by:

    1. Leonid Sorokin & Svetlana Balashova & Konstantin Gomonov & Ksenia Belyaeva, 2023. "Exploring the Relationship between Crude Oil Prices and Renewable Energy Production: Evidence from the USA," Energies, MDPI, vol. 16(11), pages 1-24, May.
    2. Dąbrowski, Marek A. & Papież, Monika & Rubaszek, Michał & Śmiech, Sławomir, 2022. "The role of economic development for the effect of oil market shocks on oil-exporting countries. Evidence from the interacted panel VAR model," Energy Economics, Elsevier, vol. 110(C).
    3. Periklis Gogas & Theophilos Papadimitriou, 2022. "Emerging Trends in Energy Economics," Energies, MDPI, vol. 15(14), pages 1-2, July.

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