Macroeconomic Impacts of Oil Price Fluctuations: Panel Data Evidence from Oil-Importing Developing Countries

Authors

  • Iftikhar Ahmad Higher Education Department Punjab, Lahore, Pakistan
  • Muhammad Azhar Bhatti The Islamia University of Bahawalpur, Bahawalpur, Pakistan.
  • Muhammad Atiq-ur Rehman Higher Education Department Punjab, Lahore, Pakistan
  • Tusawar Iftikhar Ahmad The Islamia University of Bahawalpur, Bahawalpur, Pakistan.

DOI:

https://doi.org/10.52131/joe.2024.0602.0224

Keywords:

Oil Prices, GDP, Inflation, Panel Data

Abstract

This study reconnoiters the impact of oil price fluctuations on the macroeconomic performance of 95 oil-importing countries for the period 1981-2023. Due to an unobserved heterogeneity among the countries, the fixed effect approach of panel data estimation is employed. This approach is advantageous because it controls for the country-specific time invariant characteristics. According to our empirical findings, oil price fluctuations substantially affect GDP and Inflation. However, the coefficient on unemployment remains statistically insignificant. Our findings suggest that governmental policies should focus on reducing oil dependency by promoting renewable energy sources for improved macroeconomic performance and sustainable development.

Author Biographies

Iftikhar Ahmad, Higher Education Department Punjab, Lahore, Pakistan

Assistant Professor

PhD Scholar Superior University, Lahore, Pakistan.

Muhammad Azhar Bhatti, The Islamia University of Bahawalpur, Bahawalpur, Pakistan.

Lecturer, Department of Economics

Muhammad Atiq-ur Rehman, Higher Education Department Punjab, Lahore, Pakistan

Assistant Professor
Superior University Lahore, Pakistan.

Tusawar Iftikhar Ahmad, The Islamia University of Bahawalpur, Bahawalpur, Pakistan.

Associate Professor, Department of Economics

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Published

2024-06-29

How to Cite

Ahmad, I., Bhatti, M. A., Rehman, M. A.- ur, & Ahmad, T. I. (2024). Macroeconomic Impacts of Oil Price Fluctuations: Panel Data Evidence from Oil-Importing Developing Countries. IRASD Journal of Economics, 6(2), 567–575. https://doi.org/10.52131/joe.2024.0602.0224