Oil Price and Economic Growth Nexus in Saudi Arabia: Asymmetry Analysis

Haider Mahmood () and Muntasir Murshed

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 1, 29-33

Abstract: Oil Price (OP) and revenue play a significant contribution to the income of oil producers. Saudi income is majorly sourced from the oil sector. Therefore, it is very important to see the influence of OP on income. Particularly, testing asymmetry is necessary to see whether increasing OP has the same effect on income or not as of decreasing OP. This present research cares about this issue using nonlinear cointegration techniques. We found the symmetrical effect of OP on income in the long-run and asymmetrical effects in the short-run. Moreover, increasing and decreasing OP have equal pleasant and harmful effects on income. Moreover, increasing OP has a more pleasant effect than that of decreasing OP harmful effects on income in the short-run.

Keywords: Asymmetry; Oil price; Economic growth; cointegration (search for similar items in EconPapers)
JEL-codes: C12 O47 Q41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/10382/5552 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/10382/5552 (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:journ2:2021-01-5

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 ().