Oil price movements and macroeconomic performance: Evidence from twenty-six OECD countries

Salih Katircioglu (), Kamil Sertoglu, Mehmet Candemir and Mehmet Mercan

Renewable and Sustainable Energy Reviews, 2015, vol. 44, issue C, 257-270

Abstract: This study investigates the relationship between oil price movements and macroeconomic aggregates, such as gross domestic product (GDP), consumer prices (CPI), and unemployment, for OECD countries. To do this, second generation econometric methods have been employed to panel data including panel unit root tests, panel cointegration tests, and panel long-run models. Panel unit root tests suggest that oil prices plus selected macroeconomic aggregates in OECD countries are non-stationary at levels but become stationary at first differences in the existence of multiple structural breaks. Five structural break points have successfully been investigated in the series of this study during panel unit root and panel cointegration tests. Durbin–H panel co-integration tests confirm that there is a long-term relationship between oil prices and those macroeconomic aggregates. On the other hand, results of this study reveal that the price of oil exerts statistically and negatively significant impacts on GDP, CPI, and unemployment in the case of OECD countries in general.

Keywords: Oil price; Macroeconomy; OECD (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032114010685
Full text for ScienceDirect subscribers only

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:eee:rensus:v:44:y:2015:i:c:p:257-270

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2014.12.016

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().