The effect of oil price shocks on economic growth (Case Study; Selected Oil Exporting Countries)

This paper examines the impact of oil price shocks on economic growth in oil-exporting countries. So in this regard, we extracted the Petroleum Exporting Countries Data. Variables of the model are GDP growth, employment ratio, gross capital formation, the actual price and the real price of oil and gas. In this paper we use a panel data regression model with fixed and random method. An annual data for the period 1990 to 2009, for 26 oil exporting countries, including Canada, France, Iran, Italy, Kazakhstan, Norway, Singapore, Britain, America, Venezuela, Malaysia, Netherlands, Australia, Germany, Indonesia, Bangladesh, Belgium, Japan, Brazil, Kenya, Denmark, Mexico, Egypt, Sweden, India and Thailand have been collected. The results show that the positive shocks of oil price has a positive effect and the negative shocks of oil price has a negative effect on the GDP growth of oil exporting countries.