Global Crude Oil Price, Oil Revenue and Economic Performance:
Dutch Disease Hypothesis

EFUNTADE; Olubunmi Omotayo; PhD; EFUNTADE; Alani Olusegun; FCIB; ACA

doi:https://doi.org/10.56201/ijefm.v8.no1.2023.pg30.47

📄 Download Paper

Global Crude Oil Price, Oil Revenue and Economic Performance: Dutch Disease Hypothesis

EFUNTADE, Olubunmi Omotayo, PhD, EFUNTADE, Alani Olusegun, FCIB, ACA

Abstract

The purpose of this paper is to give a general understanding of the global crude oil price, oil revenue and economic performance vis-à-vis Dutch disease proposition. This work explores the relationship between the price of crude oil and its oil revenue generation on the regions of the Organization of the Petroleum Exporting Countries (OPEC) and non-Organization of the Petroleum Exporting Countries (non-OPEC). The crude oil price has recently been ?uctuating greatly that it cannot be predicted; this ?uctuation causes changes in the oil revenues, thus affecting the economy worldwide. To better understand the factors that affect the crude oil price, this study examined West Texas Intermediate (WTI), Brent, Dubai oil and OPEC oil prices whether the Global oil fluctuation in these countries have a signi?cant effect on the ?uctuation of Oil revenues. Various studies have con?rmed the importance of crude oil prices to the global economy. This study focuses on the relationship between crude oil prices and oil revenue levels. However, therefore, in addition to the in-depth understanding of the relationship between oil prices and oil revenues, the relationship other variables and oil prices is valuable and worthwhile topic to explore. The findings of the studies reviewed revealed that the agriculture sector, manufacturing and telecommunication sector exerted a positive and significant impact on Nigerian economic performance and diversification dwindling oil revenue should be invested heavily on productive non-tradeable sector according to Dutch diseases hypothesis (Riti et al., 2016).

Keywords

Global crude oil pricesoil revenueeconomic performanceDutch disease hypothesisresearch gapssystematic reviewsframeworkmodel formulation. JEL classification code: H2C22Q43. E39I31

References

Apergis, N. (2019). The role of oil price volatility in the real and financial economy: A survey review. In Routledge Handbook of Energy Economics, 355-367. Routledge. Ayoola, F. J. & Olanrewaju, R. O. (2018). Effect of crude oil spot prices: A Markov switching intercept and heteroscedasticity approach. International Journal of Modern Mathematical Sciences,16(2),135-147. Anfofum, A. A. & Olure-Bank A. M. (2018). Analysis of oil revenue and economic corruption in Nigeria. International and Public Affairs, 2(1), 1-10. Akinlolu, A. O. & Nejo, F.M. (2020). Oil revenue and Nigerian economic growth from 1981 2018: A resource curse? International Journal of Management Studies and Social Science Research, 2(4), 291-304. Al-Rasasi, M. H., Qualls, J. H. & Algamdi, B.K. (2019). Oil revenue and economic growth in Saudi Arabia. International Journal of Economics and Financial Research, 5(3), 49 –55. Asangunla, T.M. & Agbede, M.O. (2018). Oil revenue and output growth in Nigeria. IIARD International Journal of Economics and Business Management, 4(6), 65 – 74. Balcilar, M., & Ozdemir, Z. A. (2019). The nexus between the oil price and its volatility risk in a stochastic volatility in the mean model with time-varying parameters. Resources Policy, 61, 572-584. Bourghelle, D., Jawadi, F., & Rozin, P. (2021). Oil price volatility in the context of Covid-19. International Economics,167, 39-49. Caporin, M., Fontini, F. &Talebbeydokhti, E. (2019). Testing persistence of WTI and Brent long-run relationship after the shale oil supply shock. Energy Economics,79,21-31. Caro, J.M.B., Golpe, A.A., Iglesias, J. &Vides, J.C. (2020). A new way of measuring the WTI Brent spread, Globalization, shock persistence and common trends. Economics,85,104-114. Energy Corden, M. & Neary, J. P. (1982). Booming sector and de-industrialisation in a small open economy. Economic Journal, 92,825-848. Chapman, D., & Khanna, N. (2000). World oil: The growing case for international policy. Contemporary Economic Policy, 18, 1-13. Chapman, D. & Khanna, N. (2001). An economic analysis of aspects of petroleum and military security in the Persian Gulf. Contemporary Economic Policy, 19, 371-381. Chapman, D., & Khanna, N. (2006). The Persian Gulf, global oil resources, and international security. Contemporary Economic Policy, 24,507-519. Caldara, D., Cavallo, M., & Iacoviello, M. (2019). Oil price elasticities and oil price fluctuations. Journal of Monetary Economics, 103, 1-20. Chatziantoniou, I., Filippidis, M., Filis, G., & Gabauer, D. (2021). A closer look into the global determinants of oil price volatility. Energy Economics, 95, 105-115.

Global Crude Oil Price, Oil Revenue and Economic Performance: Dutch Disease Hypothesis

Abstract

Keywords

References

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT