The effects of oil price shocks on output growth in the Arab region -

Abstract

Ever since the early 1900s, the world has seen the demand for oil rise drastically. As the emerging economies continue to develop, it is safe to say that this trend will continue hence increasing the importance of that resource worldwide. This project aims at analyzing empirically how oil shocks affect the output growth in the Arab countries that are either net exporters or net importers of this commodity but who do little to affect the global oil prices. The restriction of no command on world oil prices falls into the dynamic Vector Autoregressive setting. According to the impulse response, the effects of the world oil price on the GDP of Kuwait, Qatar and Tunisia are positive and significant while it is not the case in Morocco.