The Dynamic Effect of Oil Rent on Industrial Value Added: a SVAR Approach
This paper studies the dynamic effect of oil rents on industrial added value in a sample of countries with different levels of development. Using a SVAR model, we tested the effect of a real shock and a nominal shock on the variables of the model. The main obtained results are three. First, we confirmed that the Dutch disease (DD) problem is a short-term phenomenon that takes place each time there is a shock on oil rents. Second, the ephemeral nature of the phenomenon confirms the neoclassical assumption stating that the effect of nominal shocks on real variables is only short term. Third, the effect of long-term real shock on oil rents is positive for all countries which score interdependence between industry on the one hand and oil rents on the other.
|Date of creation:||04 Mar 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +322 299 3523
Fax: +322 299 3523
Web page: http://www.eeri.eu/index.htmEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Buiter, William H & Purvis, Douglas D, 1980.
"Oil, Disinflation, and Export Competitiveness : A Model of the "Dutch Disease","
The Warwick Economics Research Paper Series (TWERPS)
185, University of Warwick, Department of Economics.
- Willem H. Buiter & Douglas D. Purvis, 1980. "Oil, Disinflation, and Export Competitiveness: A Model of the "Dutch Disease"," NBER Working Papers 0592, National Bureau of Economic Research, Inc.
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
- Olivier Jean Blanchard & Danny Quah, 1988.
"The Dynamic Effects of Aggregate Demand and Supply Disturbances,"
NBER Working Papers
2737, National Bureau of Economic Research, Inc.
- Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-73, September.
- Olivier Jean Blanchard & Danny Quah, 1988. "The Dynamic Effects of Aggregate Demand and Supply Disturbance," Working papers 497, Massachusetts Institute of Technology (MIT), Department of Economics.
- Eastwood, R K & Venables, A J, 1982. "The Macroeconomic Implications of a Resource Discovery in an Open Economy," Economic Journal, Royal Economic Society, vol. 92(366), pages 285-99, June.
- Juan Pablo Medina Guzman & Ruy Lama, 2010. "Is Exchange Rate Stabilization a+L4510n Appropriate Cure for the Dutch Disease?," IMF Working Papers 10/182, International Monetary Fund.
- Kareem Ismail, 2010. "The Structural Manifestation of the `Dutch Diseaseâ€™; The Case of Oil Exporting Countries," IMF Working Papers 10/103, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:eei:rpaper:eeri_rp_2013_04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julia van Hove)
If references are entirely missing, you can add them using this form.