The impacts of oil export and food production on inflation in African OPEC members

This study examined the long run impact of oil export and food production on inflation in African OPEC member countries. The countries consist Algeria, Angola, Libya and Nigeria. This study applied Pedroni cointegration test. In addition, dynamic panel ARDL models (PMG and MG estimators) were also u...

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Main Authors: Bala, Umar, Lee, Chin, Kaliappan, Shivee Ranjanee, Ismail, Normaz Wana
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/63472/
http://psasir.upm.edu.my/id/eprint/63472/1/%281%29%20IJEM%20%28S3%29%202017%20THE%20IMPACTS%20OF%20OIL%20EXPORT%20AND%20FOOD%20PRODUCTION%20ON%20INFLATION%20IN%20AFRICAN%20OPEC%20MEMBERS%20.pdf
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author Bala, Umar
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
author_facet Bala, Umar
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
author_sort Bala, Umar
building UPM Institutional Repository
collection Online Access
description This study examined the long run impact of oil export and food production on inflation in African OPEC member countries. The countries consist Algeria, Angola, Libya and Nigeria. This study applied Pedroni cointegration test. In addition, dynamic panel ARDL models (PMG and MG estimators) were also used. This study found that the long-run coefficient of oil exports, money supply, exchange rate and GDP are positively related to inflation while food production is negatively related to inflation. The policy makers should maintain a certain level of oil export to minimize the rate of inflation, also to encourage domestic food production to reduce the rate of inflation. Besides that, the study also concludes that increase in money supply and depreciation of exchange rate cause inflation rate. Hence, the policy makers can use the contractionary monetary policy as well as currency control to reduce the inflation rate in OPEC member countries.
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spelling upm-634722018-09-06T02:29:26Z http://psasir.upm.edu.my/id/eprint/63472/ The impacts of oil export and food production on inflation in African OPEC members Bala, Umar Lee, Chin Kaliappan, Shivee Ranjanee Ismail, Normaz Wana This study examined the long run impact of oil export and food production on inflation in African OPEC member countries. The countries consist Algeria, Angola, Libya and Nigeria. This study applied Pedroni cointegration test. In addition, dynamic panel ARDL models (PMG and MG estimators) were also used. This study found that the long-run coefficient of oil exports, money supply, exchange rate and GDP are positively related to inflation while food production is negatively related to inflation. The policy makers should maintain a certain level of oil export to minimize the rate of inflation, also to encourage domestic food production to reduce the rate of inflation. Besides that, the study also concludes that increase in money supply and depreciation of exchange rate cause inflation rate. Hence, the policy makers can use the contractionary monetary policy as well as currency control to reduce the inflation rate in OPEC member countries. Faculty of Economics and Management, Universiti Putra Malaysia 2017-12 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63472/1/%281%29%20IJEM%20%28S3%29%202017%20THE%20IMPACTS%20OF%20OIL%20EXPORT%20AND%20FOOD%20PRODUCTION%20ON%20INFLATION%20IN%20AFRICAN%20OPEC%20MEMBERS%20.pdf Bala, Umar and Lee, Chin and Kaliappan, Shivee Ranjanee and Ismail, Normaz Wana (2017) The impacts of oil export and food production on inflation in African OPEC members. International Journal of Economics and Management, 11 (S3). pp. 573-590. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol11noS3/(1)%20IJEM%20(S3)%202017%20THE%20IMPACTS%20OF%20OIL%20EXPORT%20AND%20FOOD%20PRODUCTION%20ON%20INFLATION%20IN%20AFRICAN%20OPEC%20MEMBERS%20.pdf
spellingShingle Bala, Umar
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
The impacts of oil export and food production on inflation in African OPEC members
title The impacts of oil export and food production on inflation in African OPEC members
title_full The impacts of oil export and food production on inflation in African OPEC members
title_fullStr The impacts of oil export and food production on inflation in African OPEC members
title_full_unstemmed The impacts of oil export and food production on inflation in African OPEC members
title_short The impacts of oil export and food production on inflation in African OPEC members
title_sort impacts of oil export and food production on inflation in african opec members
url http://psasir.upm.edu.my/id/eprint/63472/
http://psasir.upm.edu.my/id/eprint/63472/
http://psasir.upm.edu.my/id/eprint/63472/1/%281%29%20IJEM%20%28S3%29%202017%20THE%20IMPACTS%20OF%20OIL%20EXPORT%20AND%20FOOD%20PRODUCTION%20ON%20INFLATION%20IN%20AFRICAN%20OPEC%20MEMBERS%20.pdf