This paper investigates the existence of long-term relationship between oil prices and GDP between oil exporters in 12 OPEC countries. Our empirical exercise showed a relationship between oil prices and gross domestic product in the oil exporting countries. This paper is provided considering the fact that the economic activity will react against the oil price change in these countries. A statistical method used in this paper is based on correlation. Our empirical study on 12 countries has shown that such a behavior is relevant since asymmetric cointegration can be found, while standard cointegration was generally rejected.
Download