Oil Price and Macroeconomic Fundamentals in African Net Oil-Exporting Countries: Evidence from Toda–Yamamoto and Homogeneous Causality Tests

Maku Olukayode E. (), Ogede Jimoh S. () and Osisanwo Bukonla G. ()
Additional contact information
Maku Olukayode E.: Department of Economics, Olabisi Onabanjo University, Ago Iwoye
Ogede Jimoh S.: Department of Economics, Olabisi Onabanjo University, Ago Iwoye
Osisanwo Bukonla G.: Department of Economics, Olabisi Onabanjo University, Ago Iwoye

Acta Universitatis Sapientiae, Economics and Business, 2021, vol. 9, issue 1, 102-114

Abstract: Despite the wealth of literature on the oil price growth examinations, there is a shortage of research on the causality between oil prices and various macroeconomic fundamentals with regard to the group of net oil-exporting countries in Africa. This study examines the causality between oil price volatility and macroeconomic fundamentals in net oil-exporting countries in Africa using the Toda–Yamamoto and homogeneous causality techniques to gauge the nexus in the selected countries from 1995 to 2019. Our findings from the panel causality test suggest that oil price volatility significantly Granger causes the economic growth of the selected net oil-exporting countries in Africa. However, a mixed outcome was observed for the cross-sectional analyses using the Toda–Yamamoto causality test. Hence, the study offers the need for a policy framework that would drive the output growth as oil price changes continue to threaten macroeconomic variables.

Keywords: oil price volatility; macroeconomic fundamentals; net oil-exporting countries; Toda–Yamamoto causality (search for similar items in EconPapers)
JEL-codes: C10 E32 Q43 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/auseb-2021-0006 (text/html)

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:vrs:auseab:v:9:y:2021:i:1:p:102-114:n:7

DOI: 10.2478/auseb-2021-0006

Access Statistics for this article

Acta Universitatis Sapientiae, Economics and Business is currently edited by Dávid László

More articles in Acta Universitatis Sapientiae, Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().