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World oil prices and O.E.C.D. trade balance

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  • Dominick Salvatore
  • Greg Winczewski

Abstract

This paper develops a theoretical model which postulates that while the drop in oil prices during the 1980s has benefitted O.E.C.D. countries in a way not unlike a favorable productivity shock, the concomitant shift in oil market share from Arab or cartel core petroleum exporting countries to non-Arab or non-cartel core petroleum exporting countries, has provided less benefits to the O.E.C.D. countries than has hitherto been acknowledged. The econometric analysis lends support to the model. Copyright Kluwer Academic Publishers 1990

Suggested Citation

  • Dominick Salvatore & Greg Winczewski, 1990. "World oil prices and O.E.C.D. trade balance," Open Economies Review, Springer, vol. 1(1), pages 89-106, February.
    • Handle: RePEc:kap:openec:v:1:y:1990:i:1:p:89-106
    DOI: 10.1007/BF01886177
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    References listed on IDEAS

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    1. Bruno, Michael, 1980. "Import Prices and Stagflation in the Industrial Countries: A Cross-Section Analysis," Economic Journal, Royal Economic Society, vol. 90(359), pages 479-492, September.
    2. Marion, Nancy Peregrim & Svensson, Lars E O, 1984. "World Equilibrium with Oil Price Increases: An Intertemporal Analysis," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 86-102, March.
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    4. Lars E. O. Svensson, 1984. "Oil Prices, Welfare, and the Trade Balance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 649-672.
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    8. Gately, Dermot, 1984. "A Ten-Year Retrospective: OPEC and the World Oil Market," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1100-1114, September.
    9. Dominick Salvatore, 1984. "Petroleum prices, exchange rates, and domestic inflation in developing nations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(3), pages 580-589, September.
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    Cited by:

    1. Pham, Thai-Binh & Sala, Hector, 2019. "The macroeconomic effects of oil price and risk-premium shocks on Vietnam: Evidence from an over-identifying SVAR analysis," MPRA Paper 96873, University Library of Munich, Germany, revised 05 Jul 2019.
    2. Baek, Jungho, 2023. "A new look at the crude oil shocks and trade nexus: Evidence from bilateral trade between Korea and its three largest partners," Resources Policy, Elsevier, vol. 85(PA).

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