Measuring economic growth in OPEC countries : A panel data approach

 
 
 
  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract


    Most of the developing and under-developed countries have been facing a lot of challenges on the issue of economic growth, despite the fact that they are endowed with both natural and human resources. This study examines the determinants of real per Capita GDP growth in Organization of the Petroleum Exporting Countries (OPEC) using a panel of twelve countries for the period of 1986 and 2010.The pooled Ordinary Least Squares (OLS), Fixed Effect (FE) and Random Effect (RE) models were employed to assess the relationship between CGDP and other economic variables used. The result showed that price level of consumptions (pc) and investment share (ci) are the important factors of CGDP that contribute to the economic growth of OPEC countries. The result also established that exchange rate (Xrat), price of GDP (p), purchasing power parity (ppp) and ci have a positive influence on CGDP. The test statistic revealed that Random Effects Model (REM) estimator is more efficient than OLS and that there is no significance difference between Fixed Effects Model (FEM) and REM estimators.


  • Keywords


    Exchange Rate; Fixed Effect; Gross Domestic Product; Panel Data Model; Random Effect.

  • References


      [1] Artelaris P., Arvanitidis P. and Petrakos G., Theoretical and Methodological study on Dynamic Growth regions and factors explaining their Growth Performance. Paper Presented at the 2nd Workshop of DYNREG in Athens, 9-10 March (2007).

      [2] Atif Akbar, M. Imdadullah, M. Amanullah, and M. Aslam, Determinant of Economic Growth in Asian Countries: A panel Data Perspective, Pakistan Journal of Social sciences vol. 31 No. 1 (June 2011), pp: 145-157.

      [3] Bahamani-Oskooee, M. and Abm, N., Panel Data and Productivity Bias Hypothesis. Economic Development and Cultural Change, 49:2 (2001), 395-402. http://dx.doi.org/10.1086/452508.

      [4] Baltagi, Badi H., Econometric Analysis of Panel Data (4th edition). John Wiley &Sons,Ltd., U.S.A, (2008), pp:35-82.

      [5] Basu, A., Calamitsis E. A., Ghura D., "Adjustment and Growth in Sub-Saharan Africa". Economic Issue is based on IMF Working Paper 99, 51(2005).

      [6] Greene, William H., Estimating Econometric Models with Fixed Effects. Department of Economics, Stern School of Business, New York University (2001).

      [7] Green William H., Econometric Analysis (sixth edition). Pearson Prentice Hall New Jersy (2008).

      [8] Heston, A. and summers, R., International Price and Quantity Comparisons: Potentials and Pitfalls. The American economic review, Papers and proceedings of the 108 annual meeting of the American Economic Association San Francisco Vol. 86, No. 2(1996) CA, 20-24.

      [9] Hsiao, C., Benefits and Limitations of Using Panel Data, Econometric Reviews, vol. 4 (1986), pp: 121-174 http://dx.doi.org/10.1080/07474938508800078.

      [10] Hsiao Cheng, Analysis of Panel Data, and Cambridge University Press (2nd edition), Cambridge, New York (2005), pp: 1-13.

      [11] Johnson, Jack and DiNardo, Econometric Methods (fourth edition). The McGraw-Hill Companies, Inc New York (1997).

      [12] Liao, T. F., A Method for Analyzing Categorical Data with Panel Attrition. University of Illinois & University of Essex, Methodology of Longitudinal Surveys Conference, Colchester (2006).

      [13] NargesPourhosseingh, Causality between Oil Consumption and Economic Growth in OPEC Countries: A Panel Cointegration Approach http://ideas.respec.org/a/asi/aeafrj (2013) pp: 1642-165.

      [14] Ndambiri H.K. et al, Determinants of Economic Growth in Sub-Saharan African: A panel Data Approach, International Journal of Economics and Management sciences, Vol. 2 (2012), pp: 18-24.

      [15] Nkurunziza, J.D., and Bates, R.H., Political Institutions and Economic Growth in Africa, Center for International Development Working Paper, No. 98 (2003), Harvard University.

      [16] Wooldridge, Jelfrey M., Introductory Econometrics: A modern Approach (fifth edition). South-Western Cengage Learning (2013): pp: 466-484.


 

View

Download

Article ID: 4544
 
DOI: 10.14419/ijamr.v4i2.4544




Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.