Methodology for examining the relationship between oil rent and crude oil production: Evidence from Cameroon

Marcel Rodrigue Ewodo-Amougou; Flavian Emmanuel Sapnken; Inoussah Moungnutou Mfetoum; Jean Gaston Tamba

MethodsX (Dec 2023)

Methodology for examining the relationship between oil rent and crude oil production: Evidence from Cameroon

Marcel Rodrigue Ewodo-Amougou,
Flavian Emmanuel Sapnken,
Inoussah Moungnutou Mfetoum,
Jean Gaston Tamba

Affiliations

Marcel Rodrigue Ewodo-Amougou: Laboratory of Technologies and Applied Science, PO Box 8698, IUT Douala, Douala, Cameroon; Corresponding author.
Flavian Emmanuel Sapnken: Laboratory of Technologies and Applied Science, PO Box 8698, IUT Douala, Douala, Cameroon; Transports and Applied Logistics Laboratory, University Institute of Technology, University of Douala, PO Box 8698 Douala, Cameroon; Energy Insight-Tomorrow Today, PO Box 2043 Douala, Cameroon
Inoussah Moungnutou Mfetoum: Laboratory of Technologies and Applied Science, PO Box 8698, IUT Douala, Douala, Cameroon; Transports and Applied Logistics Laboratory, University Institute of Technology, University of Douala, PO Box 8698 Douala, Cameroon
Jean Gaston Tamba: Laboratory of Technologies and Applied Science, PO Box 8698, IUT Douala, Douala, Cameroon; Transports and Applied Logistics Laboratory, University Institute of Technology, University of Douala, PO Box 8698 Douala, Cameroon; Energy Insight-Tomorrow Today, PO Box 2043 Douala, Cameroon

Journal volume & issue: Vol. 11
p. 102363

Abstract

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The relationship between oil rent and crude oil production remains unexplored in Cameroon. This study therefore aims to apply the Autoregressive Distributed Lag (ARDL) estimation technique and the Granger causality test using the Toda–Yamamoto procedure to capture the symmetric impact and causality links between oil rent and crude oil production in Cameroon. The study covers the period from 1977 to 2019, and includes crude oil prices, human development index (HDI) and corruption as other variables. The study indicates that there is a significant negative linear impact of crude oil production on oil rent and a bidirectional causality between oil rent and crude oil production. Finally, the price of crude oil, HDI and corruption are found to pass through production to influence oil rent. The results of this study will guide policy makers in managing and sustaining oil revenues for growth and prosperity. • The paper examines the linear impact of crude oil production on oil rent and the causal links between crude oil production and oil rent by incorporating crude oil prices, HDI and corruption. • Bidirectional causality between oil rent and crude oil production. • Convergence of crude oil price, HDI and corruption to crude oil production to influence oil rent.

Estimation paper and Causality Approach

Published in MethodsX

ISSN: 2215-0161 (Online)
Publisher: Elsevier
Country of publisher: Netherlands
LCC subjects: Science
Website: http://www.journals.elsevier.com/methodsx/

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