Oil Price Volatility and Economic Growth: Evidence from the Middle East

Nashat Ali Almasria; Hassan Hamad Aldboush; Omar Al-Kasasbeh; Abdalwali Lutfi; Fadya Burhan Alhajahmad; Thamir Al Barrak; Ghaith Alsheikh

doi:10.32479/ijeep.15484

International Journal of Energy Economics and Policy (May 2024)

Oil Price Volatility and Economic Growth: Evidence from the Middle East

Nashat Ali Almasria,
Hassan Hamad Aldboush,
Omar Al-Kasasbeh,
Abdalwali Lutfi,
Fadya Burhan Alhajahmad,
Thamir Al Barrak,
Ghaith Alsheikh

Affiliations

Nashat Ali Almasria: Department of Accounting and Finance, College of Business Administration, A’Sharqiyah University, Ibra, Oman
Hassan Hamad Aldboush: Department of Finance and Banking, Faculty of Business, Philadelphia University, Amman, Jordan
Omar Al-Kasasbeh: Faculty of Business, Amman Arab University, Jordan
Abdalwali Lutfi: Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia; College of Business Administration, The University of Kalba, Kalba, 11115, Sharjah, United Arab Emirates; Jadara University Research Center, Jadara University, Jordan; Applied Science Research Center, Applied Science Private University, Jordan; MEU Research Unit, Middle East University, Amman, Jordan.
Fadya Burhan Alhajahmad: The World Islamic Science and Education University, Jordan
Thamir Al Barrak: Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Ghaith Alsheikh: Faculty of Business, Amman Arab University, Jordan

DOI: https://doi.org/10.32479/ijeep.15484
Journal volume & issue: Vol. 14, no. 3

Abstract

Read online

This paper seeks to study the effect of oil price volatility on economic growth in Middle East countries (Jordan, United Arab Emirates, Saudi Arabia, Kuwait, Qatar, and Turkey). The study's goals were achieved by utilising a range of econometric methodologies. For instance, the IPS and LLC procedures are used to study unit root qualities, while Westerlund and Edgerton's (2008) test is used to study cointegration. The findings demonstrate a long-term correlation between Oil price volatility, inflation, investment, and economic growth. The study concludes with more detailed findings regarding how oil prices affect gross domestic product growth. As such, policymakers can use it to support their decision-making.

Oil Price Volatility, Investment, Inflation, Cross-Sectional

Published in International Journal of Energy Economics and Policy

ISSN: 2146-4553 (Online)
Publisher: EconJournals
Country of publisher: Türkiye
LCC subjects: Geography. Anthropology. Recreation: Environmental sciences; Social Sciences: Industries. Land use. Labor: Special industries and trades: Energy industries. Energy policy. Fuel trade
Website: https://www.econjournals.com/index.php/ijeep

About the journal

Abstract

Keywords