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Article

The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries

1
College of Business Administration, Prince Sattam bin Abdulaziz University, 173, Alkharj 11942, Saudi Arabia
2
Department of Agriculture Economics, Kafr Elshiekh University, Kafr Elshiekh 33511, Egypt
*
Author to whom correspondence should be addressed.
Resources 2020, 9(12), 139; https://doi.org/10.3390/resources9120139
Received: 14 October 2020 / Revised: 16 November 2020 / Accepted: 17 November 2020 / Published: 24 November 2020
The present study investigates the asymmetrical impacts of oil prices and real exchange rates on the trade balances in the Gulf Co-operation Council countries. Using panel estimates, we found the symmetrical positive effect from the oil prices and the asymmetrical positive effect from the real exchange rates on the trade balances. For country-specific results, increasing oil prices showed a positive effect on the trade balances in Oman, Saudi Arabia, and the UAE and a negative effect in Kuwait. Decreasing oil prices carried a positive relationship with the trade balances in Bahrain, Oman, Qatar, and the UAE. The oil prices showed an asymmetrical impact on the trade balances in all countries, except Saudi Arabia. Moreover, the depreciation helped to improve the trade balances in Bahrain, Oman, Qatar, and the UAE. The appreciation worsened the trade balances in Oman, the UAE, and Saudi Arabia and improved the trade balance in Kuwait. Moreover, the asymmetrical relationships between the real exchange rates and the trade balances were corroborated in all of the investigated countries. View Full-Text
Keywords: trade balances; real exchange rates; oil prices; asymmetry trade balances; real exchange rates; oil prices; asymmetry
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MDPI and ACS Style

Alkhateeb, T.T.Y.; Mahmood, H. The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries. Resources 2020, 9, 139. https://doi.org/10.3390/resources9120139

AMA Style

Alkhateeb TTY, Mahmood H. The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries. Resources. 2020; 9(12):139. https://doi.org/10.3390/resources9120139

Chicago/Turabian Style

Alkhateeb, Tarek T.Y., and Haider Mahmood. 2020. "The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries" Resources 9, no. 12: 139. https://doi.org/10.3390/resources9120139

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