Reverse Globalization: Does High Oil Price Volatility Discourage International Trade?

Shiu-Sheng Chen and Kai-Wei Hsu

MPRA Paper from University Library of Munich, Germany

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 Q40 (search for similar items in EconPapers)
Date: 2012-01-25
New Economics Papers: this item is included in nep-bec, nep-cwa, nep-ene and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/36182/1/MPRA_paper_36182.pdf original version (application/pdf)

Related works:
Journal Article: 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:pra:mprapa:36182

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().