The impact of oil revenues on the Iranian economy and the Gulf States

Arbeitspapier

In line with the neoclassical growth model a persistent stream of oil revenues might have a long lasting impact on GDP per capita in oil exporting countries through higher investment activities. This relationship is explored for Iran and the countries of the Gulf Cooperation Council (GCC) using (panel) cointegration techniques. The existence of cointegration between oil revenues, GDP and investment can be confirmed for all countries. While the cointegration vector is found to be unique for Iran, long run equations for GDP and investment per capita are distinguished for the Gulf countries. Both variables respond to deviations from the steady state, while oil income can be treated as weakly exogenous. The long run oil elasticities for the Gulf states exceed their Iranian counterparts. In addition, investment in Iran does not react to oil revenues in the long run. Hence, oil revenues may have been spent less wisely in Iran over the past decades.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: DIW Discussion Papers ; No. 1369

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Growth of Open Economies ; Economywide Country Studies: Asia including Middle East ; Nonrenewable Resources and Conservation: General ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Thema: oil exporting countries ; oil revenues ; panel cointegration

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dreger, Christian ; Rahmani, Teymur
• Ereignis: Veröffentlichung
• (wer): Deutsches Institut für Wirtschaftsforschung (DIW)
• (wo): Berlin
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/95244
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ