Asymmetric Oil Price and Inflation: Evidence from Net Oil Exporting Countries in Africa

Emmanuel Oladapo George and Jimoh Sina Ogede ()
Additional contact information
Emmanuel Oladapo George: Olabisi Onabanjo University, Ago-Iwoye, Nigeria
Jimoh Sina Ogede: Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Business & Management Compass, 2020, issue 2, 168-179

Abstract: This paper explores the Pooled Mean Group Estimation piloted by Pesaran et al (1999) to examine the impact of asymmetric oil price on inflation in selected net oil exporting countries in Africa. This technique permits us to gauge the influence of oil price volatility on inflation, and also able to capture possible asymmetric adjustment of the inflation towards to its long-run equilibrium. The findings suggest that both positive and negative oil price changes (?=0.0409; p=0.849 and ?=0.3763; p=0.065 respectively) had an insignificant positive effect on inflation on the Africa net oil-exporting countries. The study concluded that oil price changes had an insignificant impact on inflation in the Africa net oil-exporting countriesin the long run but seems to be diverse in the short-run. This, however, may not be unconnected with the role of fiscal policy measures institutionalized by the respective government of the selected Africa’s net oil exporting countries as revealed in the findings. The paper offers thateach of the selected Africa’s net oil exporting countries should expand their consumption expenditure and develop their manufacturing export capability in order to inspire domestic production of quality food in large quantity considering the fact that it can be used as counteractive measure against inflation.

Keywords: Inflation; asymmetric oil price; Panelautoregressive distributed lag; Net Oil- Exporting; OPEC (search for similar items in EconPapers)
JEL-codes: Q43 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://journal.ue-varna.bg/uploads/20200817095114_14812812235f3a531274138.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2020:i:2:p:168-179

Access Statistics for this article

Business & Management Compass is currently edited by Julian Vasilev

More articles in Business & Management Compass from University of Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Yana Doneva ().