Original scientific paper
https://doi.org/10.1080/1331677X.2016.1235504
Interactions between business conditions, economic growth and crude oil prices
Setareh Sodeyfi
Salih Katircioglu
Abstract
This study aims to research the empirical relationship between
business conditions (BCs) and crude oil prices by employing a time
series analysis for a panel of regions. BCs have been proxied by real
income and real industrial production (IND) as advised in the relevant
literature. Results suggest that economic activity and industrial value
added are in a long-term relationship with oil price movements in the
selected countries and regions. Gross domestic product (GDP) and
IND are significantly affected by oil prices worldwide. Real income
converges to long-term paths significantly, but at low levels through
the channel of oil price movements. Oil price has a negative impact
on business activities in some countries while it has a positive impact
in others. Therefore, the sign of coefficient of oil prices on business
conditions has found significant in this research study.
Keywords
Business conditions (BCs); oil; error correction model (ECM)
Hrčak ID:
171781
URI
Publication date:
22.12.2016.
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