Part of #Oil Exports, Non Oil GDP and Investment in the GCC Countries# :
Publishing year : 2008
Conference : 7th International Conference on East-West Asian Trade Relations: Opportunities, Perspectives and Challenges
Number of pages : 35
Abstract This paper studies the long and short-run relations between oil exports, non oil GDP and investment in five major oil exporting countries. Its goal is to verify the effect of natural resource exports on economic performance. It considers the effect of cross sectional correlations and uses the corresponding panel unit root tests to study the long-run characteristics of the data series. The results show that resources' exports have no long-run relationship with the macro variables. A VAR analysis is used to estimate short-run dynamics and shows that the oil export effect of these variables depends on local policies.