Crude Oil Prices, Household Spending and Economic Growth in the ASEAN-4 Region: An Analysis of Nonlinear Panel Autoregressive Distributed Lag

Wali Aya Rumbia, Abd Azis Muthalib, Bakhtiar Abbas, Pasrun Adam, Heppi Millia, La Ode Saidi and Muh. Irfandy Azis
Additional contact information
Wali Aya Rumbia: Department of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,
Abd Azis Muthalib: Department of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,
Bakhtiar Abbas: Study Program of Management, Sekolah Tinggi Ilmu Ekonomi Enam-Enam, Kendari 93121, Indonesia,
Pasrun Adam: Department of Mathematics, Universitas Halu Oleo, Kendari 93232, Indonesia,
Heppi Millia: Department of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,
La Ode Saidi: Department of Mathematics, Universitas Halu Oleo, Kendari 93232, Indonesia,
Muh. Irfandy Azis: Department of Accounting, Universitas Borneo Tarakan, Tarakan 77123, Indonesia.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 4, 437-442

Abstract: This paper looks at the long run and short run asymmetric impact of crude oil prices on Indonesia's economic growth. It also assesses whether household spending affects the economic growth in the ASEAN-4 Region (Indonesia, Singapore, Thailand and the Philippines) in the long run and short run. We use, to this end, annual time series data of crude oil prices, household consumption expenditure, and GDP for the period 1967-2018. To analyze the data, we employ a nonlinear panel autoregressive distributed lag model. The test results provide evidence that in the long-run, crude oil prices have an asymmetric impact on economic growth. Every 1% increase in crude oil prices, economic growth rises by 0.42%. Meanwhile, household spending does not affect economic growth in the long-run. Furthermore, in the short run, the test results show the presence of an asymmetric impact of crude oil prices on economic growth. Similarly, in the short run, household spending affects economic growth.

Keywords: Crude Oil Prices; Household Spending; Economic Growth; Nonlinear Panel Autoregressive Distributed Lag Model. (search for similar items in EconPapers)
JEL-codes: C33 E21 E31 O47 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/9293/5152 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/9293/5152 (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:eco:journ2:2020-04-55

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().