Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
9-1-2016
Abstract
In this paper, we attempt to analyze, during the period spanning from January 2000 to July 2015, the impact of oil price shocks on inflationand the real exchange rate in a set of oil importers and exporters MENA countries: Tunisia, Morocco, Algeria, Bahrain, Saudi Arabia and Iran (MENA-6) using a Structural VAR model. The impulseresponse functions reveal that, in the long run, oil price fluctuations havethe major impact on real exchange rate of the oilimporting countries (Tunisiaand Morocco) while the impact on inflation is smaller and absorbed by the rigidity of subsidized products prices. The variance decomposition results also assertthat oil price shocks do not explain notably thevariation in the twoconsidered variables in Algeria and Iran.We further identify an impact on the two variables that is both statistically significant and economically large in the rest of countries.
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
18
Issue
2
Recommended Citation
Brini, Riadh and Jemmali, Hatem, "Macroeconomic impacts of oil price shocks on inflation and real exchange rate: Evidence from selected MENA countries". Topics in Middle Eastern and North African Economies, electronic journal, 18, 2, Middle East Economic Association and Loyola University Chicago, 2016, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© 2016 The Authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.