Suleiman, Najat Nassor and Jamaludin, Husna and Lacheheb, Zakaria (2025) The dynamic impact of oil price on economic growth in African countries. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15 (4). pp. 371-387. E-ISSN 2225-8329
|
PDF
- Published Version
Download (535kB) | Preview |
Abstract
This study examines the influence of oil prices on economic growth across 51 African countries from 2005 to 2023. It uses pooled Ordinary Least Squares (OLS), Random Effects (RE), Fixed Effects (FE), and the Generalized Method of Moments (GMM) estimations to address issues of endogeneity and dynamic relationships. The analysis includes key macroeconomic variables such as the labor force, capital, exchange rates, inflation, and the current account balance. Results from dynamic panel GMM models show sustained economic growth, indicated by a strong, positive lagged GDP coefficient. Oil prices have a statistically significant positive effect on growth in the RE, FE, and GMM models, highlighting the influence of oil market fluctuations on African economies. Variables like labor force and capital investment support growth, while inflation and exchange rate volatility negatively affect it, reflecting macroeconomic risks. Additionally, the impact of oil prices on economic growth is asymmetric between oil-importing and oil-exporting countries, indicating the vulnerability of African economies to oil price fluctuations. These findings emphasize the crucial role of oil price movements in shaping the economic landscape of African nations and underscore the need for comprehensive macroeconomic policies to manage inflation and exchange rate pressures.
| Item Type: | Article (Journal) |
|---|---|
| Uncontrolled Keywords: | Oil price, economic growth, Africa, GMM |
| Subjects: | H Social Sciences > HA Statistics > HA29 Theory and method of social science statistics H Social Sciences > HB Economic Theory > HB3711 Business cycles. Economic fluctuations |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics |
| Depositing User: | Dr husna jamaludin |
| Date Deposited: | 15 Dec 2025 17:40 |
| Last Modified: | 17 Dec 2025 07:33 |
| Queue Number: | 2025-12-Q741 |
| URI: | http://irep.iium.edu.my/id/eprint/125534 |
Actions (login required)
 |
View Item |
Download Statistics
Download Statistics