Skip to Main content Skip to Navigation
Journal articles

Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development

Abstract : Oil-exporting countries usually experience large current account improvements following a sharp increase in oil prices. In this paper, we investigate this oil price-current account relationship on a sample of 27 oil-exporting economies. Relying upon the estimation of panel smooth transition regression models over the 1980-2010 period, we provide evidence that refines the traditional interpretation of oil price effects on current accounts. While current accounts are positively affected by oil price variations, this effect is nonlinear and depends critically on the degree of financial development of oil-exporting economies. More specifically, oil price variations exert a stronger impact on the current account position for less financially developed countries, this influence diminishing with financial deepness.
Document type :
Journal articles
Complete list of metadatas

Cited literature [52 references]  Display  Hide  Download

https://hal-univ-paris10.archives-ouvertes.fr/hal-01385946
Contributor : Administrateur Hal Nanterre <>
Submitted on : Tuesday, May 15, 2018 - 8:12:10 PM
Last modification on : Tuesday, November 19, 2019 - 9:45:35 AM
Long-term archiving on: : Wednesday, September 26, 2018 - 12:30:52 AM

File

JIMF_Final draft.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : hal-01385946, version 1

Citation

Jean-Pierre Allegret, Cécile Couharde, Dramane Coulibaly, Valérie Mignon. Current accounts and oil price fluctuations in oil-exporting countries: the role of financial development. Journal of International Money and Finance, Elsevier, 2014, 47, pp.185 - 201. ⟨hal-01385946⟩

Share

Metrics

Record views

158

Files downloads

398