The Dynamics of Oil Price And Economic Growth in Six Low-Income Sub-Saharan African Countries
Keywords:
oil price, economic growth, country-based literature, oil-importing countries, SSAAbstract
This paper highlights the dynamics of oil price and economic growth in six low-income oil-importing countries in sub-Saharan Africa. These countries are Ethiopia, Gambia, Liberia, Mozambique, Senegal and Tanzania. The study explores the individual countries’ energy sources and the effect of oil price on economic growth. The study finds that low-income countries in SSA mainly depends on biofuel for energy sources and oil is mainly used in the transport and services sector. Therefore, while the effect of oil price on economies of low-income countries may not be huge due to the structure of their energy mix, biofuels have an adverse effect on climate change. However, oil demand has increased in the countries examined in this study, with countries like Liberia spending about 15% of its income on oil imports and Ethiopia’s total import volume of petroleum products increasing by approximately 10% from 2017 to 2018. Therefore, low-income countries’ policymakers should pay attention to energy efficiency policies that will exacerbate growth.
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Bank of Tanzania, 2018. Annual Report 2017/18.
Baumeister, C., and Kilian, L. 2016. Understanding the Decline in the Price of Oil since June 2014. Journal of the Association of Environmental and Resource Economists, 3(1), pp.131-158.
British Petroleum, 2018. Statistical Review of World Energy, 67th Edition.
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IMF, 2017. Regional Economic Outlook: Sub-Saharan Africa. Sub-Saharan Africa Restarting the Growth Engine. International Monetary Fund, USA.
Kilian, L., and Murphy, D. P. 2014. The role of inventories and speculative trading in the global market for crude oil. Journal of Applied Econometrics, 29(3), pp.454-478.
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Ministry of Water Irrigation and Energy, 2012. Energy balance and statistics for years 2005/06-2010/11. Ministry of water, Irrigation and energy.
Mondal, M.A.H., Bryan, E., Ringler, C., Mekonnen, D. and Rosegrant, M., 2018. Ethiopian energy status and demand scenarios: Prospects to improve energy efficiency and mitigate GHG emissions. Energy, 149, pp.161-172.
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OECD. 2017. Crude oil import prices (indicator). doi:10.1787/9ee0e3ab-en (Accessed on 31 August 2017).
OECD/IEA, 2014. African Energy Outlook. A Focus on Energy Prospects in Sub-Saharan Africa. World Energy Outlook Special Report
OPEC. 2017. Annual Statistical Bulletin. Vienna, Austria.
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WEO, 2016. World Economic Outlook Biomass database. International Monetary Fund.
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Published
2021-05-07
How to Cite
Akinsola, M., & Odhiambo, N. (2021). The Dynamics of Oil Price And Economic Growth in Six Low-Income Sub-Saharan African Countries: Array. EuroEconomica, 40(1). Retrieved from https://dj.univ-danubius.ro/index.php/EE/article/view/977
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