Energy Economics
South Asia Economic Journal http://sae.sagepub.com/
Oil Prices and Economic Activity in Pakistan
Afia Malik South Asia Economic Journal 2010 11: 223 DOI: 10.1177/139156141001100204 The online version of this article can be found at: http://sae.sagepub.com/content/11/2/223
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Research Article
Oil Prices and Economic Activity in Pakistan
Afia Malik
Abstract
South Asia Economic Journal 11(2) 223–244 ©2010 Research and Information System for Developing Countries & Institute of Policy Studies of Sri Lanka SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/139156141001100204 http://sae.sagepub.com
Oil price shocks have raised serious concerns among the policy makers around the world because of its adverse impacts for the net oil-importing economies. This article, based on the data from 1979–80 Q1 to 2007–08 Q2, analyzes the impact of rising oil prices along with the changing macro conditions on output. Oil prices and output are found to be strongly related, and to a great extent this relationship is non-linear. In addition, lower debt-GDP ratio, lower deficit spending, lower real effective exchange rate, and the existence of foreign exchange reserves and capital investment would cause output to rise. In Pakistan, besides making adjustments at the macro level, what is required is to make rational choices about the development of energy mix for the future to reduce the risk of oil price fluctuations in
Oil Prices and Economic Activity in Pakistan
Afia Malik South Asia Economic Journal 2010 11: 223 DOI: 10.1177/139156141001100204 The online version of this article can be found at: http://sae.sagepub.com/content/11/2/223
Published by: http://www.sagepublications.com Additional services and information for South Asia Economic Journal can be found at: Email Alerts: http://sae.sagepub.com/cgi/alerts Subscriptions: http://sae.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://sae.sagepub.com/content/11/2/223.refs.html
>> Version of Record - Dec 1, 2010 What is This?
Downloaded from sae.sagepub.com by guest on June 20, 2013
Research Article
Oil Prices and Economic Activity in Pakistan
Afia Malik
Abstract
South Asia Economic Journal 11(2) 223–244 ©2010 Research and Information System for Developing Countries & Institute of Policy Studies of Sri Lanka SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/139156141001100204 http://sae.sagepub.com
Oil price shocks have raised serious concerns among the policy makers around the world because of its adverse impacts for the net oil-importing economies. This article, based on the data from 1979–80 Q1 to 2007–08 Q2, analyzes the impact of rising oil prices along with the changing macro conditions on output. Oil prices and output are found to be strongly related, and to a great extent this relationship is non-linear. In addition, lower debt-GDP ratio, lower deficit spending, lower real effective exchange rate, and the existence of foreign exchange reserves and capital investment would cause output to rise. In Pakistan, besides making adjustments at the macro level, what is required is to make rational choices about the development of energy mix for the future to reduce the risk of oil price fluctuations in
Citations: http://sae.sagepub.com/content/11/2/223.refs.html >> Version of Record - Dec 1, 2010 What is This? Downloaded from sae.sagepub.com by guest on June 20, 2013 Research Article Downloaded from sae.sagepub.com by guest on June 20, 2013 224 South Asia Economic Journal, 11, 2 (2010): 223–244 Downloaded from sae.sagepub.com by guest on June 20, 2013 South Asia Economic Journal, 11, 2 (2010): 223–244 Downloaded from sae.sagepub.com by guest on June 20, 2013 Downloaded from sae.sagepub.com by guest on June 20, 2013 Oil Prices and Economic Activity in Pakistan Downloaded from sae.sagepub.com by guest on June 20, 2013 228 Downloaded from sae.sagepub.com by guest on June 20, 2013 Table 1 1999–2000 Downloaded from sae.sagepub.com by guest on June 20, 2013