 Current accounts and oil price fluctuations in oil-exporting countries: The role of financial developmentJean-Pierre Allegret, Cécile Couharde (), Dramane Coulibaly and Valérie Mignon () Journal of International Money and Finance, 2014, vol. 47, issue C, 185-201 Abstract: Oil-exporting countries usually experience large current account improvements following a sharp increase in oil prices. In this paper, we investigate this oil price-current account relationship on a sample of 27 oil-exporting economies. Relying upon the estimation of panel smooth transition regression models over the 1980–2010 period, we provide evidence that refines the traditional interpretation of oil price effects on current accounts. While current accounts are positively affected by oil price variations, this effect is nonlinear and depends critically on the degree of financial development of oil-exporting economies. More specifically, oil price variations exert a stronger impact on the current account position for less financially developed countries, this influence diminishing with financial deepness. Keywords: Current account; Oil price; Financial development; Panel smooth transition regression models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:47:y:2014:i:c:p:185-201 DOI: 10.1016/j.jimonfin.2014.06.002 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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