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The Small Oil Producer in The World Economy

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  • Jon Harkness

Abstract

This paper models the macro effects of exogenous oil and other shocks on a small open economy (SOE) which is, itself, an oil producer. The SOE has an oil and manufacturing sector, where oil is an intermediate input. The world economy is explicitly modelled. The SOE's authorities may, as in Canada, prevent world oil prices from being passed through to the domestic economy. Of interest is the insulating properties, if any, of indexing domestic to world oil prices.

Suggested Citation

  • Jon Harkness, 1982. "The Small Oil Producer in The World Economy," Working Paper 472, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:472
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