Farhad Taghizadeh Hesary, aoyuki Yoshino, hahraman Abdoli, sadollah Farzinvash
Author information
a School of Economics, Keio University, Tokyo 108-8345, Japan The Institute of Energy Economics, Japan (IEEJ), Tokyo 104-0054, Japan
b chool of Economics, Keio University, Tokyo 108-8345, Japan
c aculty of Economics, University of Tehran, Tehran 141556445, Iran
d aculty of Economics, University of Tehran, Tehran 141556445, Iran
E-mail: Farhadth@gmail.com(Farhad Taghizadeh Hesary,)
Abstract
This research evaluates the impact of oil price shocks on oil producing and consuming economies; we used a simultaneous equation framework for different countries with business relations. As expected, we found that oil-producers (here, Iran and Russia) benefit from oil price shocks. However contrary to previous findings, they also benefit from the indirect effect through their trade partners. For oil-consuming economies, the effects are more diverse. In some countries, output falls in response to an oil price shock, while some others seem to be relatively immune. Generally, those countries which trade more with oil producers gain indirect benefits via higher demand from oil-producers. For instance, the Netherlands, Germany, France, Italy, the US, the UK, and China get a negative direct effect and positive indirect effect from oil producing countries. This is exactly the result that we anticipated. India has both negative effects directly and indirectly and seems to suffer more in a positive oil price shock. For Japan, Spain, Switzerland and Turkey the results are reversed. They benefit from an oil shock directly and indirectly.
oil ,macroeconomic ,trade linked case ,Iran ,Russia
Farhad Taghizadeh Hesary, Naoyuki Yoshino, Ghahraman Abdoli, Asadollah Farzinvash. An Estimation of the Impact of Oil Shocks on Crude Oil Exporting Economies and Their Trade Partners. Front. Econ. China, 2013, 8(4): 571‒591 https://doi.org/10.3868/s060-002-013-0029-3