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Asymmetric effect of the oil price in the ecuadorian economy

Alan Bunce and Paul Carrillo-Maldonado

Energy Economics, 2023, vol. 124, issue C

Abstract: This paper aims to identify if there is an asymmetric response of the output to positive and negative changes in the price of oil. We take the case of Ecuador, an oil exporter but also an importer of derivates of the same commodity. We apply the local projections methodology to estimate this asymmetric response through state-dependence impulse response function. The results put in evidence that between the positive and negative variations of oil prices, those which affect the most to the Ecuadorian GDP are the negative ones. We also show that the persistence of the effect is higher when the oil price fall, rather than when there are positive variations.

Keywords: Asymmetry; Oil price; Local projections; Growth; Ecuador (search for similar items in EconPapers)
JEL-codes: C22 E20 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.eneco.2023.106876

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