Total factor productivity growth and oil price volatility

This paper investigates the links between oil price volatility and total factor productivity (TFP) growth using various econometric techniques. Our main result is that the volatility of oil prices has a negative and significant effect on TFP growth for the global economy and for mature economies. We assume that uncertainty in commodity markets reduces risky investments and inhibits innovation and technological progress. Nowadays, COVID19 and the oil price war between the top crude-oil producers have caused volatility in the oil market. Our results suggest that this will affect TFP during the next few years, even if the global economy is able to recover soon. Copyright © 2021 Inderscience Enterprises Ltd.

Авторы
Издательство
Inderscience Publishers
Номер выпуска
6
Язык
Английский
Страницы
548-558
Статус
Опубликовано
Том
14
Год
2021
Организации
  • 1 Faculty of Economics, Department of Economic and Mathematical Modelling, Peoples' Friendship University of Russia, RUDN University, Miklukho-Maklaya Str.6, Moscow, 117198, Russian Federation
Ключевые слова
Economic growth; GARCH-M model; Granger causality; Oil price; TFP; Total factor productivity; VAR model; Volatility
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