Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development

Jean-Pierre Allegret (), Cécile Couharde (), Dramane Coulibaly and Valérie Mignon ()
Additional contact information
Jean-Pierre Allegret: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

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 JEL Classification: F32; C33 (search for similar items in EconPapers)
Date: 2014
Note: View the original document on HAL open archive server: https://hal.parisnanterre.fr/hal-01385946
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Published in Journal of International Money and Finance, 2014, 47, pp.185 - 201

Downloads: (external link)
https://hal.parisnanterre.fr/hal-01385946/document (application/pdf)

Related works:
Journal Article: Current accounts and oil price fluctuations in oil-exporting countries: The role of financial development (2014)
Working Paper: Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development (2014)
Working Paper: Current Accounts and Oil Price Fluctuations in Oil-Exporting Countries: the Role of Financial Development (2013)
Working Paper: Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development (2013)
Working Paper: Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development (2013)
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:hal:journl:hal-01385946

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().