The asymmetric effect of oil price on growth across US States

Show simple item record Apergis, Nicholas Aslan, Alper Aye, Goodness Chioma Gupta, Rangan 2016-07-04T09:46:48Z 2016-07-04T09:46:48Z 2015
dc.description.abstract This paper investigates the dynamic relationship between oil prices and growth across the U.S. States using a panel data framework. We use both annual and quarterly data spanning the periods 1973 to 2013 and 1948Q1 to 2013Q4, respectively. Following Hatemi-J (2012), we allow for the presence of asymmetry in the cointegration and causality testing by decomposing oil prices into cumulative sums of positive and negative oil prices. The null hypothesis of no cointegration is rejected. The long-run coefficients are found to be statistically significant across all empirical models, with positive oil prices reducing output, while negative oil prices increasing output. We also find evidence of both short- and long-run bidirectional causality between aggregate oil prices and output. However, there is evidence of unidirectional causality both from positive and negative oil prices to output based on annual data. The quarterly data generated slightly different result, indicating both long- and short-run bidirectional causality between positive and negative oil prices and output. en_ZA
dc.description.department Economics en_ZA
dc.description.librarian am2016 en_ZA
dc.description.uri en_ZA
dc.identifier.citation Apergis, N, Aslan, A, Aye, GC & Gupta, R 2015, 'The asymmetric effect of oil price on growth across US States', Energy Exploration and Exploitation, vol. 33, no. 4, pp. 575-590. en_ZA
dc.identifier.issn 0144-5987
dc.language.iso en en_ZA
dc.publisher Multi-Science Publishing en_ZA
dc.rights Multi-Science Publishing en_ZA
dc.subject Oil prices en_ZA
dc.subject Economic growth en_ZA
dc.subject Asymmetric effects en_ZA
dc.subject United States (US) en_ZA
dc.title The asymmetric effect of oil price on growth across US States en_ZA
dc.type Postprint Article en_ZA

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