Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243622 
Year of Publication: 
2019
Citation: 
[Journal:] Energy Reports [ISSN:] 2352-4847 [Volume:] 5 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 688-703
Publisher: 
Elsevier, Amsterdam
Abstract: 
The study investigates the short-run and long-run relationship between oil price fluctuation and real sector growth in Pakistan. Four major sectors of the economy (Manufacturing, electricity, transport and communication, and livestock) were analyzed to find any relation. Similar studies can be found in the existing literate, however, the distinguish feature of present study is that it investigates each individual sector's linkage to oil price changes. Annual time series data of selected sectors ranging from 1976 to 2017 is selected for the study. Classical normal linear regression models under auto regressive distributed lag (ARDL) were employed to study the relationship between economic sectors and oil price fluctuation. Empirical results indicate that changes in oil price adversely affect manufacturing, livestock and electricity sectors in short-run and long-run, while significant positive impact was found on transportation and communication. Consequently, the sectors prone to oil price changes require special attention of policy makers. An expansionary monetary policy can be a short-run solution to reduce the impact of increasing oil price, whereas the government can introduce a policy framework to counter this effect in long-run.
Subjects: 
ARDL
Economic growth
Oil price volatility
Pakistan
Real economic sectors
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Appears in Collections:

Files in This Item:
File
Size
403.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.