The Impact of Oil Shocks on Qatar’s GDP
This study examines the impact of oil shocks on Qatar’s gross domestic product using time series data from the period 1970-2007 covering all the oil shocks. The Johansen-Juselius (JJ) cointegration test and VECM Granger causality test are employed in this study. From the results we concluded that oil price has a positive effect on Qatar’s gross domestic product, but at the expense of higher inflation. Qatar seems to have suffered from financial surpluses and rapid economic growth caused by sharp increases in the oil price. At the same time, with a fixed exchange regime and tight monetary policy to deal with these events, this has caused the price of assets to increase sharply, leading to high levels of inflation in Qatar. Based on the results, we recommend that the Qatari currency (riyal) be pegged to a basket of currencies so as to increase the role of monetary policy to deal with the external shocks (oil shocks).
|Date of creation:||24 Oct 2010|
|Date of revision:||31 Dec 2010|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Surender Kumar, 2009. "The Macroeconomic Effects of Oil Price Shocks: Empirical Evidence for India," Economics Bulletin, AccessEcon, vol. 29(1), pages 15-37.
- Tang, Weiqi & Wu, Libo & Zhang, ZhongXiang, 2009.
"Oil price shocks and their short- and long-term effects on the Chinese economy,"
14703, University Library of Munich, Germany.
- Tang, Weiqi & Wu, Libo & Zhang, ZhongXiang, 2010. "Oil price shocks and their short- and long-term effects on the Chinese economy," Energy Economics, Elsevier, vol. 32(Supplemen), pages S3-S14, September.
- Weiqi Tang & Libo Wu & ZhongXiang Zhang, 2009. "Oil Price Shocks and Their Short- and Long-Term Effects on the Chinese Economy," Economics Study Area Working Papers 102, East-West Center, Economics Study Area.
- repec:ebl:ecbull:v:17:y:2008:i:17:p:1-9 is not listed on IDEAS
- Mohammad Reza FARZANEGAN & Gunther MARKWARDT, .
"The Effects of Oil Price Shocks on the Iranian Economy,"
- Farzanegan, Mohammad Reza & Markwardt, Gunther, 2009. "The effects of oil price shocks on the Iranian economy," Energy Economics, Elsevier, vol. 31(1), pages 134-151, January.
- Farzanegan, Mohammad Reza & Markwardt, Gunther, 2008. "The effects of oil price shocks on the Iranian economy," Dresden Discussion Paper Series in Economics 15/08, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Amano, R. A. & van Norden, S., 1998.
"Oil prices and the rise and fall of the US real exchange rate,"
Journal of International Money and Finance,
Elsevier, vol. 17(2), pages 299-316, April.
- Robert A. Amano & Simon van Norden, 1995. "Oil Prices and the Rise and Fall of the U.S. Real Exchange Rate," International Finance 9502001, EconWPA.
- Christiane Baumeister & Gert Peersman, 2013.
"Time-Varying Effects of Oil Supply Shocks on the US Economy,"
American Economic Journal: Macroeconomics,
American Economic Association, vol. 5(4), pages 1-28, October.
- Christiane Baumeister & Gert Peersman, 2012. "Time-Varying Effects of Oil Supply Shocks on the U.S. Economy," Staff Working Papers 12-2, Bank of Canada.
- Gert Peersman & Christiane Baumeister, 2009. "Time-Varying Effects of Oil Supply Shocks on the US Economy," 2009 Meeting Papers 171, Society for Economic Dynamics.
- C. Baumeister & G. Peersman, 2008. "Time-Varying Effects of Oil Supply Shocks on the US Economy," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/515, Ghent University, Faculty of Economics and Business Administration.
- Jbir, Rafik & Zouari-Ghorbel, Sonia, 2009. "Recent oil price shock and Tunisian economy," Energy Policy, Elsevier, vol. 37(3), pages 1041-1051, March.
- Garratt, A. & Lee, K. & Pesaran, M. H. & Shin, Y., 1998.
"A Long-run Structural Macro-econometric Model of the UK,"
Cambridge Working Papers in Economics
9812, Faculty of Economics, University of Cambridge.
- Anthony Garratt & Kevin Lee & M. Hashem Pesaran & Yongcheol Shin, 2003. "A Long run structural macroeconometric model of the UK," Economic Journal, Royal Economic Society, vol. 113(487), pages 412-455, 04.
- Anthony Garratt & Kevin Lee & Mohammad Hashem Pesaran & Yongcheol Shin, 2001. "A long run structural macroeconometric model of the UK," ESE Discussion Papers 35, Edinburgh School of Economics, University of Edinburgh.
- Chang, Youngho & Wong, Joon Fong, 2003. "Oil price fluctuations and Singapore economy," Energy Policy, Elsevier, vol. 31(11), pages 1151-1165, September.
- Hilde C. Bjørnland, 2009.
"Oil Price Shocks And Stock Market Booms In An Oil Exporting Country,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 56(2), pages 232-254, 05.
- Hilde C. Bjørnland, 2008. "Oil Price Shocks and Stock Market Booms in an Oil Exporting Country," Working Paper 2008/16, Norges Bank.
- Peter Ferderer, J., 1996. "Oil price volatility and the macroeconomy," Journal of Macroeconomics, Elsevier, vol. 18(1), pages 1-26.
- Sánchez, Marcelo, 2008. "Oil shocks and endogenous markups: results from an estimated euro area DSGE model," Working Paper Series 0860, European Central Bank.
- Alessio Anzuini & Patrizio Pagano & Massimiliano Pisani, 2007. "Oil supply news in a VAR: Information from financial markets," Temi di discussione (Economic working papers) 632, Bank of Italy, Economic Research and International Relations Area.
- Almukhtar S. Al-Abri, 2013. "Oil price shocks and macroeconomic responses: does the exchange rate regime matter?," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 37(1), pages 1-19, 03.
- Gisser, Micha & Goodwin, Thomas H, 1986. "Crude Oil and the Macroeconomy: Tests of Some Popular Notions: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(1), pages 95-103, February.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27822. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.