Total factor productivity growth and oil price volatility

Svetlana Balashova
Authors registered in the RePEc Author Service: Светлана Алексеевна Балашова

International Journal of Trade and Global Markets, 2021, vol. 14, issue 6, 548-558

Abstract: This paper investigates the links between oil price volatility and total factor productivity (TFP) growth using various econometric techniques. Our main result is that the volatility of oil prices has a negative and significant effect on TFP growth for the global economy and for mature economies. We assume that uncertainty in commodity markets reduces risky investments and inhibits innovation and technological progress. Nowadays, COVID19 and the oil price war between the top crude-oil producers have caused volatility in the oil market. Our results suggest that this will affect TFP during the next few years, even if the global economy is able to recover soon.

Keywords: TFP; total factor productivity; economic growth; oil price; volatility; GARCH-M model; Granger causality; VAR model. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=118901 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijtrgm:v:14:y:2021:i:6:p:548-558

Access Statistics for this article

More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().