Analysis of oil price effect on economic growth of ASEAN net oil exporters
In this paper, the linear and nonlinear effects of oil price on growth for Association of Southeast Asian Nations (ASEAN)—3 net oil-exporting countries, namely Brunei, Malaysia and Vietnam, are investigated. The empirical analysis applies the augmented autoregressive distributed lag model (ARDL) bou...
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| Format: | Article |
| Language: | English |
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MDPI
2019
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| Online Access: | http://psasir.upm.edu.my/id/eprint/38277/ http://psasir.upm.edu.my/id/eprint/38277/1/38277.pdf |
| _version_ | 1848848834797502464 |
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| author | Karunanithi, Kriskkumar Niaz Ahmad, Mohd Naseem |
| author_facet | Karunanithi, Kriskkumar Niaz Ahmad, Mohd Naseem |
| author_sort | Karunanithi, Kriskkumar |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In this paper, the linear and nonlinear effects of oil price on growth for Association of Southeast Asian Nations (ASEAN)—3 net oil-exporting countries, namely Brunei, Malaysia and Vietnam, are investigated. The empirical analysis applies the augmented autoregressive distributed lag model (ARDL) bound test approach and the nonlinear autoregressive distributed lag model (NARDL) methodology over the period of 1979 to 2017. Evidence suggests that ignoring nonlinearities may lead to misleading results. Specifically, results reveal that the effect of oil price is asymmetric for the case of Brunei, while the effect oil price is deemed insignificant for the case of Malaysia and Vietnam, both linear and nonlinear model. Brunei’s high dependency on oil revenue makes it susceptible to negative oil price shock. This suggests that oil price still plays a significant role as the main driver of economic progress for Brunei. |
| first_indexed | 2025-11-15T09:40:48Z |
| format | Article |
| id | upm-38277 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:40:48Z |
| publishDate | 2019 |
| publisher | MDPI |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-382772020-05-04T16:11:07Z http://psasir.upm.edu.my/id/eprint/38277/ Analysis of oil price effect on economic growth of ASEAN net oil exporters Karunanithi, Kriskkumar Niaz Ahmad, Mohd Naseem In this paper, the linear and nonlinear effects of oil price on growth for Association of Southeast Asian Nations (ASEAN)—3 net oil-exporting countries, namely Brunei, Malaysia and Vietnam, are investigated. The empirical analysis applies the augmented autoregressive distributed lag model (ARDL) bound test approach and the nonlinear autoregressive distributed lag model (NARDL) methodology over the period of 1979 to 2017. Evidence suggests that ignoring nonlinearities may lead to misleading results. Specifically, results reveal that the effect of oil price is asymmetric for the case of Brunei, while the effect oil price is deemed insignificant for the case of Malaysia and Vietnam, both linear and nonlinear model. Brunei’s high dependency on oil revenue makes it susceptible to negative oil price shock. This suggests that oil price still plays a significant role as the main driver of economic progress for Brunei. MDPI 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/38277/1/38277.pdf Karunanithi, Kriskkumar and Niaz Ahmad, Mohd Naseem (2019) Analysis of oil price effect on economic growth of ASEAN net oil exporters. Energies, 12 (17). art. no. 3343. pp. 1-19. ISSN 1996-1073 https://www.mdpi.com/1996-1073/12/17/3343 10.3390/en12173343 |
| spellingShingle | Karunanithi, Kriskkumar Niaz Ahmad, Mohd Naseem Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title | Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title_full | Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title_fullStr | Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title_full_unstemmed | Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title_short | Analysis of oil price effect on economic growth of ASEAN net oil exporters |
| title_sort | analysis of oil price effect on economic growth of asean net oil exporters |
| url | http://psasir.upm.edu.my/id/eprint/38277/ http://psasir.upm.edu.my/id/eprint/38277/ http://psasir.upm.edu.my/id/eprint/38277/ http://psasir.upm.edu.my/id/eprint/38277/1/38277.pdf |