Next Article in Journal
Breaking up Is Hard to Do: Why the Eurozone Will Survive
Next Article in Special Issue
The Role of Oil Prices in Exchange Rate Movements: The CIS Oil Exporters
Previous Article in Journal
Socio-Economic Implications of Drought in the Agricultural Sector and the State Economy
Open AccessArticle

The Effects of Oil Price Shocks on IIP and CPI in Emerging Countries

1
International and Development Economics, Yale University, New Haven, CT 06511, USA
2
Graduate School of Economics, Kobe University, Rokkodai, Kobe 657-8501, Japan
*
Author to whom correspondence should be addressed.
Academic Editor: Juan C. Reboredo
Economies 2016, 4(4), 20; https://doi.org/10.3390/economies4040020
Received: 31 July 2016 / Revised: 14 September 2016 / Accepted: 22 September 2016 / Published: 29 September 2016
(This article belongs to the Special Issue Falling Oil Prices: Economic and Financial Implications)
In this paper, we investigate the effects of oil price shocks on the production and price level in five emerging countries through comparison with the United States, using a two-block structural VAR model of the global crude oil market proposed by Kilian and Park (see International Economic, vol. 50, 2009, pp. 1267–1287). Our main finding is that the effect of oil price shocks on the index of the industrial production (IIP) and consumer price index (CPI) in emerging countries also depends on where the changes fundamentally come from (this is also the case for the United States). We also found that some emerging countries showed unique impulse response patterns, the shapes of which are different from those of the United States and there are differences in impulse response patterns among emerging countries. View Full-Text
Keywords: structural VAR; oil price; emerging countries structural VAR; oil price; emerging countries
Show Figures

Figure 1

MDPI and ACS Style

Sakashita, Y.; Yoshizaki, Y. The Effects of Oil Price Shocks on IIP and CPI in Emerging Countries. Economies 2016, 4, 20.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop