The Effect of Crude Oil Prices and Internet on Economic Growth in Timor Leste

Wali Aya Rumbia, Abd Azis Muthalib, Pasrun Adam, Asrul Jabani, Yuwanda Purnamasari Pasrun and Dzulfikri Azis Muthalib
Additional contact information
Wali Aya Rumbia: Departmen of Economics, Halu Oleo University, Kendari 93232, Indonesia,
Abd Azis Muthalib: Departmen of Economics, Halu Oleo University, Kendari 93232, Indonesia,
Pasrun Adam: Department of Mathematics, Halu Oleo University, Kendari 93232, Indonesia,
Asrul Jabani: Study Program of Manajement, Sekolah Tinggi Ilmu Ekonomi Enam-Enam, Kendari 93121, Indonesia,
Yuwanda Purnamasari Pasrun: Department of Information System, Sembilanbelas November University, Kolaka 93514, Indonesia,
Dzulfikri Azis Muthalib: Study Program of Management, Universitas Muhammadyah, Kendari 93118, Indonesia.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 1, 275-280

Abstract: Continuous economic growth improves the welfare and the living standards of the people. However, for a country to experience economic growth, several factors come into play, including resource endowment, economic policies, political stability, and more. This research aimed to examine the effect of crude oil prices and internet on economic growth in Timor Leste. An autoregressive distributed lag model was used to analyze the time series data from 2005 to 2020. The cointegration test results showed that crude oil prices, internet, and economic growth are cointegrated. Based on the model coefficients, the estimation results revealed crude oil prices and internet have a significant effect on the country s long-term and short-term economic growth. The long-term effect of crude oil prices on economic growth is negative. In every 1% increase of crude oil prices, there is a 10.3% decrease in economic growth. A 1% reduction in crude oil prices leads to a 10.3% economic growth. Furthermore, the long-term effect of the internet has a long-term positive effect on economic growth. Every 1% internet increase, there is a corresponding 27.65% increase in economic growth.

Keywords: Crude Oil Prices; Internet; Economic Growth; Autoregressive Distributed Lag Model (search for similar items in EconPapers)
JEL-codes: C13 E13 E31 F62 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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