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The Influence of Oil Prices on an Oil-Importing Developing Economy

Author

Listed:
  • Fakhraddin Maroofi

    (University of Kurdistan)

  • Parviz Kafchehi

    (University of Kurdistan)

Abstract

This research examines the influence of an increase in the price of oil on a developing economy. We consider the area to which the influences of oil price revelation depend upon the economy's internal production structure and its approach to the world financial market, and find that the long-run influence depends more on the earlier than the latter. Two unfavorable quantities which the long-run effects are (i) the relative share of oil to labor in production and (ii) the elasticity of replacement in production. We increase the unapproachable examination with numbers pretends, thereby allowing us to distinguish the short-run actives. In general, the affections can replicate much of the empirical evidence used to distinguish the effects of the recent oil price increases on the economy. They also focus the responsiveness of the effect of the oil price to the elasticity of replacement.

Suggested Citation

  • Fakhraddin Maroofi & Parviz Kafchehi, 2012. "The Influence of Oil Prices on an Oil-Importing Developing Economy," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(4), pages 66-82, October.
    • Handle: RePEc:hur:ijaraf:v:2:y:2012:i:4:p:66-82
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    References listed on IDEAS

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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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