Oil Export Earnings Research Articles

Economic growth in OPEC nations: The role of renewable energy consumption, CO2 emissions, and foreign direct investment

Background: The nations that make up OPEC (the Organization of the Petroleum Exporting Countries) have traditionally depended on gas and oil export earnings. However, there is a significant global shift towards renewable energy in an effort to reduce the impact of climate change. This research aims to analyze the effect of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment (FDI) on the Economic Growth in OPEC Nations partially and simultaneously. Methods: In this research, panel data regression analysis techniques are combined with quantitative research approaches. Secondary data from the World Development Indicators (WDI) for the years 2001–2020 were used in this research. Finding: This research showed that the Renewable Energy Consumption and CO2 Emissions variables do not affect economic growth in OPEC countries. Meanwhile, the foreign direct investment variable has a positive and significant effect on economic growth in OPEC countries. Conclusion: OPEC countries need to diversify their economies and reduce their dependence on oil as there is a global shift towards cleaner energy. Novelty/Originality of this article: This study analyzes the impact of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment on Economic Growth in OPEC countries using panel data regression analysis. The study's findings show that only Foreign Direct Investment positively and significantly impacts economic growth.

Crude Oil Export Earnings and Economic Growth in Nigeria

The crude oil sector is one of the main sectors saddled with the potential to employ a large segment of the population and is an essential key to the sustenance of the economic growth of countries. This study presented an empirical analysis of the impact of crude oil export earnings on economic growth in Nigeria spanning the period of 1981 - 2020. The model built for the study was the proxied Real Gross Domestic Product (RGDP) as the endogenous variable measuring economic growth as a function of Crude Oil Export (OEX), while Exchange Rate (EXR), Trade Openness (TOP) and Transportation Cost (TPC) were the exogenous variables. The annual time series data were gathered from CBN Statistical Bulletin, and the World Development Indicator (WDI). The study used econometric techniques of Augmented DickeyFuller (ADF) unit root test, Johansson co-integration, error correction model and Granger causality for empirical analysis. The results of unit root suggested that RGDP, OEX, EXR TOP, and TPC were stationary at first difference. The Johansson co-integration showed a long-run relationship among the variables. The findings from the ECM showed that crude oil exports have a positive and significant impact on the Nigerian economy. The study recommended that the activities by the government in promoting economic growth and development in the country should be geared towards promoting and developing the Oil export base of the country as it has a significant relationship with economic growth.

Саудовская Аравия на мировом рынке нефти

The goal of the article is to analyze the role of Saudi Arabia in the world oil market and in the world economy for a long historical period. It is shown that strategically behavior of Saudi Arabia always was and continues to be subordinated to ensuring the stable supply of oil into the world oil market. Under the Saudi Arabia leadership OPEC aims at pursuing an economically rational and responsible policy, supporting the balance of the demand for oil and its supply thus allow¬ing to avoid deep and lasting oil price decline. Until the very recently an important factor impacting the formulation of Saudi oil policy was maintaining of strategic interaction with the US. The restructuring of the world oil market driven by the shale revolution and nearing peak of global demand for oil have created new challenges for Saudi Arabia oil strategy. The OPEC+ situational agreement enacted since 2017 by OPEC and non-OPEC countries to voluntary reduce levels of oil production temporarily allows to keep a supply – demand balance in the world oil market preventing from substantial drop in oil prices. At the same time the agreement opens opportunities for competitors, first of all American producers of tight oil, to maintain and expand export niches. Shale revolution created a situation when oil interests of the US and Saudi Arabia came into open conflict. For political and strategic considerations, a price war in order to crowd American oil producers with their relatively high production costs out of the market is not a feasible option for the Kingdom. Attempts to transform the state oil company Saudi Aramco into a mega supermajor utilizing on the global economic and financial potential have failed as the leading international banks and corporations avoided the company’s IPO. The failure of Saudi Aramco partial privatization is a signal of a false start of a company to open the Saudi economy to large-scale in-flow of foreign investment. Paradoxically the long-term perspectives of Saudi Arabia crucially depend on how effectively it will use in the coming 10–20 years oil export earnings for diversification of national economy outside the oil sector. Acknowledgements. The article was prepared within the project “Post-crisis world order: challenges and technologies, competition and cooperation” supported by the grant from Ministry of Science and Higher Education of the Russian Federation program for research projects in priority areas of scientific and technological development (Agreement № 075-15-2020-783).

Domestic Investment and Economic Growth Nexus in Nigeria: A Post Recession View

This study investigates the impact of domestic investment on economic growth in Nigeria, using annual secondary time series data spanning 37 years from 1981 to 2017 extracted from the CBN statistical bulletin. Real GDP was used to proxy economic growth, while the key explanatory variable is domestic investment with other control variables as capital expenditure, oil export earnings, exchange rate and inflation rate. The study embarked on pre-estimation test such as unit root test and the bounds co-integration test which informed our methodological choice of Autoregressive Distributed Lag (ARDL). The short run and long run estimates show that domestic investment has positive but insignificant impact on economic growth in Nigeria. This finding departs from those of previous writers due to the improved analytical framework employed in this study. On the basis of our findings, the study recommends a compulsory individual and national savings to boost the level of domestic investment in the country so as to achieve the much desired economic growth and development.

A Link between Oil Price and Stock Market Index: The Case of Three Countries

This study empirically explores the causal relationship between the stock market development and oil price in Russia, UK and Kazakhstan. With this aim, the data between 2000 and 2017 was used. This data was obtained from Bloomberg. The data includes Index KASE, RTS Index, FTSE Index and oil price. In order to find out the dependence between oil price and indexes of United Kingdom, Russian Federation and Kazakhstan (FTSE 100 index, RTS index and index KASE respectively) it was necessary to collect the data first of all. For the analysis it was decided to choose, as variables, the prices and trade volumes of chosen instruments. As it was mentioned previously, I looked through the 17-year period starting from January 1st, 2000 lasting January 1st, 2018. Monthly data was retrieved from Bloomberg. The purpose of the empirical analysis is to determine what kind of relationship, if any, exists between oil price and such stock indices as KASE Index, RTS Index and FTSE Index.This study investigates the interaction between the oil price and three indices. Quite an interesting fact is that there are no any significant relationships between oil price and indexes studied. Among all indices studied, Index KASE is the most dependent on oil prices. The least dependent index is FTSE index. It is important to understand that every country has its own research environment and special features, which also could be researched independently. Taking into consideration the importance of oil export earnings to the growth profile of the Kazakhstani economy, higher oil export revenues would result in the growth of Index KASE. Majority of companies listed in Kazakhstani index are export oriented. Thus, the study can serve as a promising avenue for further research. For example, for Kazakhstan, some new research indicators can be added, such as weight of export and import.

Oil Revenues and Export Earnings Instability: The Evidence from Iran

As a member of OPEC, Iran is a nation that is dependent on petrodollars. More specifically, roughly 80 percent of total export earnings in Iran are generated from oil revenue. This in fact is one of the attributes of many developing countries in that their exports are concentrated in either one or a small number of primary products that contribute to the bulk of their foreign exchange revenues. Export instability occurs because export earnings tend to fluctuate annually to a greater extent for developing countries than for advanced countries. The factors that give rise to export instability can be classified as price variability and a high degree of commodity concentration. To date, no study has examined the impact of export instability in the highly oil-dependent Iran. This study develops a model and employs a forty-year annual time series data set to estimate the impact of commodity concentration and price variability in Iran. The estimation results obtained from the time-series model developed in this study does not support the conventional argument, regarding the positive correlation between commodity concentration and export instability. It also shows that fluctuations in petroleum export revenues have significant impact on total export earnings instability in Iran.

Oil Export Earnings, Exchange Rate Variability, and Economic Growth in Nigeria

This paper investigates oil revenue and exchange rate volatility and as well as their impacts on Nigerian economic growth which is examined from 1980 – 2010. Exchange rate volatility was captured using standard deviationof monthly nominal effective exchange rate. During this period, Nigeria recorded high levels of volatility (in oil receipt and effective exchange rate) as can be seen from the Autoregressive Conditional Heteroskedasticity (ARCH) and the General Autoregressive Conditional Heteroskedasticity (GARCH) - ARCH/GARCH results. Also, the Augmented Dickey-Fuller test indicate that some of the variables exhibit unit root, this research further makes use of vector autoregressive process (VAR) using the variance decomposition of Choleski factorisation in which forecast error variance of some systems of equations has innovations which is credited to each variable and the method of impulse response function. The authors established that exchange rate in Nigeria due to its volatility causes revenue volatility from oil and this has a daring consequence on Nigeria's economic growth (being a monoculture economy). They found that change in oil price index, change in interest rate, proportion of export to GDP and exchange rate variability bears some negative impacts on change in the rate of output growth in Nigeria. Moreover, government size and exchange rate variability created some disturbances to change in the rate of output, these changes were not as substantial as those created by change in interest rate, ratio of oil export to GDP and change in oil price index. In addition, change in output responds negatively for some time horizon to one-standard deviation shocks in change in oil price index, change in interest rate, oil export to GDP and exchange rate variability. The authors recommend economic diversification and sound macroeconomic management among others.

Effectiveness of Sovereign Oil Funds as Instruments of Fiscal Stability: A Time-Series and Panel Data Analysis of the Relationship between Real Government Spending and Real Oil Export Earnings.

To enrich the debate about the effectiveness of sovereign wealth funds, this paper explores the relationship between real government spending and real oil export revenues for a sample of six countries. This exploration uses an econometric analysis based on time-series data and its purpose is to evaluate if sovereign funds (more precisely sovereign oil funds, SOFs) have moderated government spending responses to oil revenue growth. We enhance this analysis by looking to the influence of the improvement of the political and economic environment (according to the Heritage Foundation index) on the relationship between real government spending and real oil export revenues. Then, for each one of our countries, we determine the influence of the establishment of SOFs on real government spending. We use also panel data regressions to have the confirmation of the influence of funds. Finally, we determine the effect of the improvement of the characteristics of SOFs (according to Truman’s SWF scoreboard) on the correlation between real government spending and real oil export earnings.

Determinants and sustainability of international reserves accumulation in Nigeria

The study examined the determinants of international reserves accumulation in Nigeria between 1970 and 2010 with a view to determining its sustainability. The three major dimensions of sustainable development (social, economic and environment) are considered in the adopted model that was estimated using error correction and bounds testing approach to cointegration. Findings suggest that variability of export earnings and the one period lagged value of international reserves had a positive impact on international reserves holding in Nigeria. The economic (GDP per capita) and environmental (CO2 emission) measures of sustainable development also affect international reserves accumulation in the long-run. Observably, oil price negatively affects reserve holding in the long-run but is positive in the short-run. The findings suggest the need to diversify Nigeria’s sources of external reserves accumulation towards more environmentally and economically sustainable activities such that the negative effects of volatile oil export earnings and crude oil extraction are reduced.

The Impart of Oil Export Earnings on Nigeria's External Debt

The study investigates the relationship between oil export earnings and Nigeria’s external debt. The intent is to empirically determine the relationship between external debt and oil revenue using the data from 1970 to 2006. The model which was econometrically estimated and simulated, found out that; there is empirical evidence to support the fact that oil export earnings has a positive relationship with the country’s external debt. Besides, external debt has affected Nigeria’s economic growth negatively. External reserve and trade openness shows an inverse relationship with external debt. The paper therefore concluded that, poor management of these two sources of revenue vis-a-vis, oil export earnings and external debt is the major problem over the period under investigation. The external debt crisis is symptomatic of a deeper domestic economic disequilibrium. To correct this, policies that instill fiscal discipline, elimination of corruption, political stability, diversification of the economy and reduction on oil dependence will help in promoting sustainable economic development.

Determinants of Venezuela's Equilibrium Real Exchange Rate

The Venezuelan Bolivar is pegged to the U.S. dollar and supported by foreign exchange restrictions. To assess the appropriateness of the peg during the current period of high oil export earnings and the likely consequences of a liberalization, this paper attempts to disentangle the effects of oil prices from other factors underlying the equilibrium real exchange rate, and examines the role of foreign exchange controls by extending the application of a vector error correction (VEC) model to parallel market exchange rates. Several findings are worth noting. First, oil prices have indeed played a significant role in determining a time-varying equilibrium real exchange rate path. Second, oil prices are not the only important determinant of the real effective exchange rate: declining productivity is also a key factor. Third, appreciation pressures are rising. Finally, the speed of convergence of a VEC model using parallel rather than official rates is higher, suggesting that the government has been able to maintain sharp deviations between the official and equilibrium rates because of Venezuela's oil dependency and the concentration of oil income in government hands.

Determinants of Venezuela'S Equilibrium Real Exchange Rate

The Venezuelan Bolivar is pegged to the U.S. dollar and supported by foreign exchange restrictions. To assess the appropriateness of the peg during the current period of high oil export earnings and the likely consequences of a liberalization, this paper attempts to disentangle the effects of oil prices from other factors underlying the equilibrium real exchange rate, and examines the role of foreign exchange controls by extending the application of a vector error correction (VEC) model to parallel market exchange rates. Several findings are worth noting. First, oil prices have indeed played a significant role in determining a time-varying equilibrium real exchange rate path. Second, oil prices are not the only important determinant of the real effective exchange rate: declining productivity is also a key factor. Third, appreciation pressures are rising. Finally, the speed of convergence of a VEC model using parallel rather than official rates is higher, suggesting that the government has been able to maintain sharp deviations between the official and equilibrium rates because of Venezuela's oil dependency and the concentration of oil income in government hands.

The Parallel Market for Foreign Exchange in an Oil Exporting Economy: The Case of Iran, 1978-1990

This paper provides a model for the determination of the parallel market exchange rate premium in a country where oil export earnings accrue directly to the government, and foreign exchange is centrally allocated for the importation of specific goods. Next, it studies the parallel market for foreign exchange in the Islamic Republic of Iran during the period 1978-90. The paper then examines the various time series properties of parallel market exchange rate in Iran, and the evidence of the role of oil and non-oil exports in the determination of the parallel market premium.

The Parallel Market for Foreign Exchange in an Oil Exporting Economy: The Case of Iran, 1978-1990

This paper provides a model for the determination of the parallel market exchange rate premium in a country where oil export earnings accrue directly to the government, and foreign exchange is centrally allocated for the importation of specific goods. Next, it studies the parallel market for foreign exchange In the Islamic Republic of Iran during the period 1978-90. The paper then examines the various time series properties of parallel market exchange rate in Iran, and the evidence of the role of oil and non-oil exports in the determination of the parallel market premium.

Current Account Imbalance and Exchange Rate Policy

The sharp rise in the price of crude oil during the latter half of 1990 resulting from the Middle East crisis brings to the fore the issue of the impact of external shocks to the economies in the Asian and Pacific region and how to respond to such shocks. The immediate impact of the Middle East crisis is on the balance-of-payments positions of the region’s economies, primarily due to the rise in oil import payments or oil export earnings and, for some countries, from a reduction in workers’ remittances. For countries which have a substantial current account imbalance even before the Middle East crisis, it exacerbated the current account imbalance and heightened the policy issues that must be tackled to address the imbalance. How much of the current account imbalance is financiable? How far should there be exchange rate change? Should there be a sharp one-shot devaluation? How tight should the fiscal and monetary regime be? How far can we sacrifice growth for stabilization? These are some of the questions that policymakers tend to ask when confronted with the problem of large current account deficits…

The Kuwaiti national health service: Financial restraints and cost sharing imperatives

AbstractThe post‐World War II oil boom that transformed the country from a Bedouin trading center to a modern society has brought Kuwaiti citizens one of the world's highest living standards, including a tax‐free economy and a lavish array of welfare state services. Enormous wealth has not, however, sheltered Kuwait from the contemporary public policy dilemma generally encountered in other countries—how to reconcile fast‐rising public expectations for more and better government services with slower‐growing budgetary revenues. Following a review of some of the more prominent national economic and social characteristics, the structure of the Kuwaiti National Health Service is described against the backdrop of new economic realities precipitated by a decline in oil export earnings and a slowing of economic expansion. Government plans to alleviate the pressure on public spending are described which center on cost sharing with consumers and employers. Finally, the implications of cost containment for the future of private medical practice are discussed.

Export Earnings Instability: Price, Quantity, Supply, Demand?

Previous articleNext article No AccessExport Earnings Instability: Price, Quantity, Supply, Demand?David MurrayDavid Murray Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 27, Number 1Oct., 1978 Article DOIhttps://doi.org/10.1086/451073 Views: 13Total views on this site Citations: 24Citations are reported from Crossref Copyright 1978 The University of ChicagoPDF download Crossref reports the following articles citing this article:Parviz Asheghian Oil Revenues and Export Earnings Instability: The Evidence from Iran, Global Economy Journal 15, no.33 (Sep 2015): 431–442.https://doi.org/10.1515/gej-2014-0059Wei Li, Guojun Song, Melanie Beresford, Ben Ma China's transition to green energy systems: The economics of home solar water heaters and their popularization in Dezhou city, Energy Policy 39, no.1010 (Oct 2011): 5909–5919.https://doi.org/10.1016/j.enpol.2011.06.044Xian Xin, Jing Liu Geographic Concentration and China's Agricultural Export Instability, The World Economy 31, no.22 (Feb 2008): 275–285.https://doi.org/10.1111/j.1467-9701.2007.01069.xMichael A. 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