Abstract
This study investigated the impact of oil Petroleum production on economic growth in the Gulf Cooperation Council countries using panel autoregressive distributed lag model covering the period from 1960 to 2018. The results indicated that oil Petroleum production have significant positive impact on economic growth in both the long-run and the short-run period, also results show that variables are Co integrated by using the pool mean group (PMG) method. Panel Causality Test indicates that there is a causal relationship between Oil production and economic growth. There exists unidirectional causality running from economic growth (GDP) to petroleum production (PP).
Highlights
Energy is a vital input in the production process of an economy, despite considerable increase in the use of alternative sources of energy, As it is the mainstay of agricultural production, transport, industry and home, and energy dependency will continue to grow as the world’s population grows and economic growth and development continues
In order to examine the relationship between economic growth (GDP) and petroleum production, the study used annual time series data from 1960 to 2018 for six countries of the Gulf Cooperation Council countries include Kuwait, Bahrain, Saudi Arabia, Qatar, Oman, the United Arab Emirates by using Panel ARDL approach
Cointegration Results In order to investigate the panel co-integration relationship between variables after we considered the results of panel unit root tests and ensured that all the variables used in this study were integrated in the first order, we assessed the existence of a long-run relationship between them by used two tests of the Pederoni and Koa panel co-integration
Summary
Energy is a vital input in the production process of an economy, despite considerable increase in the use of alternative sources of energy, As it is the mainstay of agricultural production, transport, industry and home, and energy dependency will continue to grow as the world’s population grows and economic growth and development continues. Oil is one of the main energy sources in today’s world. It plays a major role in the economic growth process as an input (Gorus, 2017), engines of the industrial economy, accounting for about 60% of the global energy mix, while coal, nuclear, renewable energy, and a host of other secondary sources account for 40% of global energy consumed
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call