Reverse globalization: Does high oil price volatility discourage international trade?

Shiu-Sheng Chen and Kai-Wei Hsu

Energy Economics, 2012, vol. 34, issue 5, 1634-1643

Abstract: This paper examines whether higher oil price volatility causes a reversal in globalization. Using a large annual panel data set covering 84 countries all over the world from 1984 to 2008, we investigate the impacts of oil price fluctuations on international trade, namely exports and imports. We present strong and robust evidence that international trade flows will be lower when oil prices fluctuate significantly. We therefore conclude that oil price volatility hurts globalization.

Keywords: Oil price shocks; Oil price volatility; International trade; Reverse globalization (search for similar items in EconPapers)
JEL-codes: F40 Q43 (search for similar items in EconPapers)
Date: 2012
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/S0140988312000060
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Reverse Globalization: Does High Oil Price Volatility Discourage International Trade? (2012)
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:eneeco:v:34:y:2012:i:5:p:1634-1643

DOI: 10.1016/j.eneco.2012.01.005

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().