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Berument, H. & Ceylan, N.B. (2010), “The impact of oil price shocks on the economic growth of the selected MENA countries. The Energy Journal, 31(1), 149-176.

has been cited by the following article:

Article

Macroeconomics Effect of Oil Price Shocks

1Department of Economics, Ferdowsi University of Mashhad, Iran

2School of Mathematical and Statistical Sciences, Southern Illinois University, Carbondale, IL, USA


Journal of Finance and Economics. 2025, Vol. 13 No. 3, 94-100
DOI: 10.12691/jfe-13-3-2
Copyright © 2025 Science and Education Publishing

Cite this paper:
Elnaz Hajebi, S. Yaser Samadi. Macroeconomics Effect of Oil Price Shocks. Journal of Finance and Economics. 2025; 13(3):94-100. doi: 10.12691/jfe-13-3-2.

Correspondence to: Elnaz  Hajebi, Department of Economics, Ferdowsi University of Mashhad, Iran. Email: Elnaz.Hajebi.academics@gmail.com

Abstract

In an interconnected world, fluctuations in global oil prices significantly impact the economies of oil-exporting countries. This study investigates the effects of oil price shocks on the macroeconomic variables of major Organisation for Economic Co-operation and Development (OECD) oil-exporting countries from 1990 to 2022 using the panel vector autoregressive (PVAR) approach. The model comprises four variables to analyze the heterogeneous dynamic response to oil price shocks. The results indicate that oil price shocks negatively affect the economic growth rate and interest rates. The impact on inflation is positive but decreases after several periods. The shock's effect on the exchange rate is negative at first and slightly turns to positive thereafter.

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