Oil price shocks and real GDP growth: empirical evidence for some OECD countries

By Rebeca Jiménez-Rodríguez *, M. Sánchez. Social Science Research Network, 2005

174 citations recorded by the source corpus.

This study assesses empirically the effects of oil price shocks on the real economic activity of the main industrialized countries. Multivariate VAR analysis is carried out using both linear and non-linear models. The latter category includes three approaches employed in the literature, namely, the asymmetric, scaled and net specifications. Evidence of a non-linear impact of oil prices on real GDP is found. In particular, oil price increases are found to have an impact on GDP growth of a larger magnitude than that of oil price declines, with the latter being statistically insignificant in most cases. Among oil importing countries, oil price increases are found to have a negative impact on economic activity in all cases but Japan. Moreover, the effect of oil shocks on GDP growth differs between the two oil exporting countries in the sample, with the UK being negatively affected by an oil price increase and Norway benefiting from it.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/bda9074907e96a998b02bc72945c8b101016356c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Historical energy price shocks and their changing effects on the economy (2017, background): “Burbridge and Harrison (1984), Gisser and Goodwin (1986), Mork (1989), Mork et al. (1994), Lee et al (1995), Ferderer (1996), Papapetrou (2001), Jimenez-Rodriguez and Sanchez (2005), Lardic and Mignon (2006) and Cunado and de Gracia (2005) found consistent negative impacts of oil prices on GDP for…”
The Impact of Oil Price Shocks on the Economic Growth of Selected MENA1 Countries (2010, background): “In order to partially address the misspecification functional form, following Lee, Ni and Ratti (1995), Hamilton (1996), Cuñado and de Gracia (2003), and Jiménez-Rodríguez and Sánchez (2005), we consider a set of specification that allows non-linearity.”
Structural oil price shocks and policy uncertainty (2013, background): “…(1983) paper connecting oil price shocks with recession in the U.S., work by Lee et al. (1995), Hamilton (2005), Cunado and Perez de Garcia (2005), Jimenez-Rodriguez and Sanchez (2005) and Cologni and Manera (2008), amongst others, has confirmed the significance of real oil prices for real…”
The asymmetric effects of oil shocks on output growth: a Markov-switching analysis for the G-7 countries (2006, unknown): “Jimenez-Rodriguez and Sanchez (2005) and Cologni and Manera (2006) carry out multivariate regressions for the most developed countries in order to account, respectively, for the inverse relationship between GDP and oil prices and the reaction of monetary variables to external shocks.”