Relative efficiency of oil price versus oil output in promoting economic growth: Is OPEC’s strategy right?

Olesia Kozlova () and Jose Noguera-Santaella ()
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Jose Noguera-Santaella: Universidad de Santiago de Chile

Empirical Economics, 2019, vol. 57, issue 6, No 9, 1997-2012

Abstract: Abstract A dilemma faced by oil exporting countries is the relative efficiency of the traditional OPEC cartel policy of setting quotas to target a certain crude oil price level versus the policy usually followed by non-OPEC countries of choosing the crude oil output level that maximizes profits, taking the oil price level as given. This paper contributes to the oil and macroeconomics literature by using panel cointegration techniques that consider cross-sectional dependence and structural breaks to study the relative efficiency of these policies to promote economic growth in oil exporting countries.

Keywords: Oil price; Oil production; Oil exporters; OPEC; Economic growth; Panel cointegration (search for similar items in EconPapers)
JEL-codes: O40 Q43 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s00181-018-1537-1

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