Oil Price Uncertainty: Panel Evidence from the G7 and BRICS Countries

Abstract

This chapter investigates the effects of oil price uncertainty and oil price shocks on total factor productivity growth in the G7 and BRICS countries. It shows that oil price uncertainty has negative and statistically significant effects on total factor productivity growth and that positive (negative) oil price shocks decrease (increase) the TFP growth rate in the G7 countries but have the opposite effects in the BRICS countries. Moreover, oil price shocks have in general asymmetric effects on total factor productivity growth in the G7 countries but symmetric effects in the BRICS countries.