Oil exports and non-oil exports: Dutch disease effects in the Organization of Petroleum Exporting Countries (OPEC)


Karamelikli H., Akalin G., ARSLAN Ü.

Journal of Economic Studies, vol.44, no.4, pp.540-551, 2017 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 44 Issue: 4
  • Publication Date: 2017
  • Doi Number: 10.1108/jes-01-2016-0015
  • Journal Name: Journal of Economic Studies
  • Journal Indexes: Scopus
  • Page Numbers: pp.540-551
  • Keywords: Economic growth, Export, OPEC, Panel data analysis
  • Hatay Mustafa Kemal University Affiliated: Yes

Abstract

Purpose: The purpose of this paper is to examine the dynamic relationship between oil exports, non-oil exports, imports and economic growth in the Organization of Petroleum Exporting Countries (OPEC), covering the period 1972-2013 by using panel data analysis. Design/methodology/approach: The results from the dynamic panel data methods are as follows: there exists the cross-sectional dependence on each variable. According to the cross-sectionally augmented panel unit root tests, all variables are stationary at the first difference. Westerlund and Edgerton (2007) LM Bootstrap cointegration test shows that there is a long-term relationship between variables. Findings: The results obtained by the Common Correlated Effects (CCE) estimator indicate that the increase in oil exports has a positive impact on the GDP of all countries, while the increase in oil exports has a negative impact on the non-oil exports of some countries. Originality/value: In this study, the relationship between oil exports, economic growth, imports and non-oil exports of the 12 OPEC member countries is tested by considering the cross-sectional dependence between 1972 and 2013. In the study, the authors found a positive relationship as a result of researching the impact of oil exports on economic growth in the frame of CCE panel estimations results.