OIL PRICE SHOCK AND ECONOMIC GROWTH: EXPERIENCE OF CEMAC COUNTRIES

  • Christophe Raoul BESSO University de Yaoundé II, Cameroon
  • Erick Patrick FEUBI PAMEN University de Yaoundé II, Cameroon

Abstract

The objective of this paper is to evaluate the impact of oil shocks on the growth rate of Growth Domestic Product (GDP) in CEMAC countries. We use a panel VAR model approach to the variation of the real GDP growth rate, oil price inflation rate and money supply between 2000 and 2015. Our main results show that CEMAC countries mostly depend on oil pension. Consequently, the analysis of impulsion response functions and the decomposition of variance show that, the shock on oil price negatively affects the growth rate of the GDP. We then suggest CEMAC countries to diversify their production, the destination of their exports and the sources of budgetary income or takings.

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Published
2017-06-30
How to Cite
BESSO, Christophe Raoul; FEUBI PAMEN, Erick Patrick. OIL PRICE SHOCK AND ECONOMIC GROWTH: EXPERIENCE OF CEMAC COUNTRIES. Theoretical and Practical Research in Economic Fields, [S.l.], v. 8, n. 1, p. 5-18, june 2017. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/1285>. Date accessed: 28 mar. 2024. doi: https://doi.org/10.14505/tpref.v8.1(15).01.