Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
9-1-2016
Abstract
This paper aims to examine the effects of oil price shocks on the manufacturing sector in Saudi Arabia during the period 2002 – 2014, using quarterly data. A unit root test was conducted, in which the data were shown to be non-stationary in the level, and they became stationary in the first difference for all variables. The co-integration model was applied, and the results indicated that no co-integrating equation exists, which means that there is no long run effect of oil price shocks on the manufacturing sector. So, we estimate a Vector Auto Regressive model, the results of which implied that oil price shocks do not affect in the manufacturing sector in the short run, and it may have an effect on the manufacturing sector after 10 quarter according to the impulse response function.
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
Mahboub, Abdelhamid A. and Ahmad, Heba E., "The effect of oil price shocks on the Saudi manufacturing sector". 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/
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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.