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Crude oil trade and current account deficits: replication and extension


  • Andrew Musau

    () (Inland Norway University of Applied Sciences)

  • Steinar Veka

    (Inland Norway University of Applied Sciences)


Huntington (Energy Economics, 50, 70–79) explores the association between oil trade and a nation’s current account balance using a sample of 91 countries observed over the years 1984–2009. Differentiating exporters from importers, he finds that net oil exports are significant in explaining current account surpluses but net oil imports do not explain current account deficits. We successfully replicate this result after expanding the sample of countries by two-fifths and increasing the time frame to include recent periods of high volatility in oil prices. Furthermore, we investigate differences in the oil trade–current account association between countries grouped in terms of income per capita as well as the association between oil trade and the different components that constitute the current account. Our results reveal a positive association between net oil export balance and the trade balance component but no association with the non-trade balance component, suggesting the dominance of the former.

Suggested Citation

  • Andrew Musau & Steinar Veka, 2020. "Crude oil trade and current account deficits: replication and extension," Empirical Economics, Springer, vol. 58(2), pages 875-897, February.
  • Handle: RePEc:spr:empeco:v:58:y:2020:i:2:d:10.1007_s00181-018-1522-8
    DOI: 10.1007/s00181-018-1522-8

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    More about this item


    Current account; Oil trade; Cross-country analysis;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy


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