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The impact of financial development, oil price on economic growth in African OPEC members

This study ascertains impacts of financial development, oil price on economic growth in African OPEC members. Many studies have been done on financial development and economic growth, without considering the nature of the economic dependency. This study considered the African OPEC members has oil-de...

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Main Authors: Umar, Bala, Lee, Chin, Kaliappan, Shivee Ranjanee, Ismail, Normaz Wana
Format: Article
Language:English
Published: ASERS Publishing 2017
Online Access:http://psasir.upm.edu.my/id/eprint/63466/1/The%20impact%20of%20financial%20development%20oil%20price%20on%20economic%20growth.pdf
http://psasir.upm.edu.my/id/eprint/63466/
https://www.researchgate.net/publication/321482140_The_impact_of_financial_devwlopment_oil_price_on_economic_growth_in_African_OPEC_members
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spelling my.upm.eprints.634662018-08-27T01:08:16Z http://psasir.upm.edu.my/id/eprint/63466/ The impact of financial development, oil price on economic growth in African OPEC members Umar, Bala Lee, Chin Kaliappan, Shivee Ranjanee Ismail, Normaz Wana This study ascertains impacts of financial development, oil price on economic growth in African OPEC members. Many studies have been done on financial development and economic growth, without considering the nature of the economic dependency. This study considered the African OPEC members has oil-dependent economies. The study used dynamic panel method in the estimation of the results. The four sample countries are Algeria, Angola, Libya, and Nigeria the study excluding Gabon has suspended it OPEC membership within the study period. The panel cointegration estimated results using Pedroni cointegration procedure indicate that there is a long-run relationship in models. The long-run coefficient using modified OLS (FMOLS) estimator provide substantial evidence that financial development, oil price are positively encouraged economic growth. From the results, we observed that the economy is highly benefiting from oil price models without investment, but when investment included in the model, the impact of oil price become less. The policy implications of these results are that even though the economy is benefiting oil price but because of the uncertainty in the oil market the policy makers should encourage the financial sector credit to productive investment industries that can support economic growth to reduce the oil dependency to diversify the economic activities. ASERS Publishing 2017-12-03 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63466/1/The%20impact%20of%20financial%20development%20oil%20price%20on%20economic%20growth.pdf Umar, Bala and Lee, Chin and Kaliappan, Shivee Ranjanee and Ismail, Normaz Wana (2017) The impact of financial development, oil price on economic growth in African OPEC members. Journal of Applied Economic Sciences, 12 (52). 1640 - 1653. ISSN 1843-6110 https://www.researchgate.net/publication/321482140_The_impact_of_financial_devwlopment_oil_price_on_economic_growth_in_African_OPEC_members
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This study ascertains impacts of financial development, oil price on economic growth in African OPEC members. Many studies have been done on financial development and economic growth, without considering the nature of the economic dependency. This study considered the African OPEC members has oil-dependent economies. The study used dynamic panel method in the estimation of the results. The four sample countries are Algeria, Angola, Libya, and Nigeria the study excluding Gabon has suspended it OPEC membership within the study period. The panel cointegration estimated results using Pedroni cointegration procedure indicate that there is a long-run relationship in models. The long-run coefficient using modified OLS (FMOLS) estimator provide substantial evidence that financial development, oil price are positively encouraged economic growth. From the results, we observed that the economy is highly benefiting from oil price models without investment, but when investment included in the model, the impact of oil price become less. The policy implications of these results are that even though the economy is benefiting oil price but because of the uncertainty in the oil market the policy makers should encourage the financial sector credit to productive investment industries that can support economic growth to reduce the oil dependency to diversify the economic activities.
format Article
author Umar, Bala
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
spellingShingle Umar, Bala
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
The impact of financial development, oil price on economic growth in African OPEC members
author_facet Umar, Bala
Lee, Chin
Kaliappan, Shivee Ranjanee
Ismail, Normaz Wana
author_sort Umar, Bala
title The impact of financial development, oil price on economic growth in African OPEC members
title_short The impact of financial development, oil price on economic growth in African OPEC members
title_full The impact of financial development, oil price on economic growth in African OPEC members
title_fullStr The impact of financial development, oil price on economic growth in African OPEC members
title_full_unstemmed The impact of financial development, oil price on economic growth in African OPEC members
title_sort impact of financial development, oil price on economic growth in african opec members
publisher ASERS Publishing
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/63466/1/The%20impact%20of%20financial%20development%20oil%20price%20on%20economic%20growth.pdf
http://psasir.upm.edu.my/id/eprint/63466/
https://www.researchgate.net/publication/321482140_The_impact_of_financial_devwlopment_oil_price_on_economic_growth_in_African_OPEC_members
_version_ 1643837808062758912
score 13.211869

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