Oil price shocks pass-through to domestic prices in Nigeria

IF 1.5 Q2 ECONOMICS OPEC Energy Review Pub Date : 2024-02-22 DOI:10.1111/opec.12298
Samuel Orekoya, Oluwatosin Adeniyi, Idris Tijani
{"title":"Oil price shocks pass-through to domestic prices in Nigeria","authors":"Samuel Orekoya, Oluwatosin Adeniyi, Idris Tijani","doi":"10.1111/opec.12298","DOIUrl":null,"url":null,"abstract":"The study investigated the potential non-linear impacts of fluctuations in oil prices on domestic prices in Nigeria. Utilising the non-linear autoregressive distributed lag (NARDL) model, the study revealed the presence of asymmetry in the behaviour of domestic prices. Both forms of oil price shocks were observed to have a negative influence on domestic prices in the short term, with only positive oil price shocks demonstrating statistical significance. However, in the long run, a distinct pattern emerged where a decrease in oil prices significantly affected domestic prices. Additionally, analysis of VAR impulse response showed a consistently negative reaction of domestic prices to oil price shocks, falling below the steady-state equilibrium. The study concluded that changes in oil prices, in conjunction with other macroeconomic variables, affected the prices of domestic goods in Nigeria, whether in the short or long term. This underscored the complexity of Nigeria's economic landscape. Consequently, it is advisable to prudently invest excess revenue generated from rising oil prices to mitigate the adverse impacts of negative oil shocks on the economy.","PeriodicalId":44992,"journal":{"name":"OPEC Energy Review","volume":null,"pages":null},"PeriodicalIF":1.5000,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"OPEC Energy Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/opec.12298","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0

Abstract

The study investigated the potential non-linear impacts of fluctuations in oil prices on domestic prices in Nigeria. Utilising the non-linear autoregressive distributed lag (NARDL) model, the study revealed the presence of asymmetry in the behaviour of domestic prices. Both forms of oil price shocks were observed to have a negative influence on domestic prices in the short term, with only positive oil price shocks demonstrating statistical significance. However, in the long run, a distinct pattern emerged where a decrease in oil prices significantly affected domestic prices. Additionally, analysis of VAR impulse response showed a consistently negative reaction of domestic prices to oil price shocks, falling below the steady-state equilibrium. The study concluded that changes in oil prices, in conjunction with other macroeconomic variables, affected the prices of domestic goods in Nigeria, whether in the short or long term. This underscored the complexity of Nigeria's economic landscape. Consequently, it is advisable to prudently invest excess revenue generated from rising oil prices to mitigate the adverse impacts of negative oil shocks on the economy.
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
石油价格冲击对尼日利亚国内价格的影响
本研究调查了石油价格波动对尼日利亚国内价格的潜在非线性影响。研究利用非线性自回归分布滞后(NARDL)模型,揭示了国内价格行为中存在的非对称性。据观察,两种形式的石油价格冲击在短期内都对国内价格产生了负面影响,只有正的石油价格冲击在统计上具有显著性。然而,从长期来看,出现了一种明显的模式,即石油价格的下降对国内价格产生了重大影响。此外,对 VAR 脉冲响应的分析表明,国内价格对石油价格冲击的反应持续为负,低于稳态均衡。研究得出结论,石油价格的变化与其他宏观经济变量一起,影响着尼日利亚国内商品的价格,无论是短期还是长期。这凸显了尼日利亚经济格局的复杂性。因此,最好对石油价格上涨带来的超额收入进行谨慎投资,以减轻石油冲击对经济的不利影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
OPEC Energy Review
OPEC Energy Review ECONOMICS-
CiteScore
2.90
自引率
4.50%
发文量
34
期刊最新文献
Exploring the impact of oil revenue on Nigeria's economic growth: A non‐linear autoregressive distributed lag model The contribution of technological innovation, trade and economic development to renewable energy use in the United Kingdom, Germany and Turkey Modelling and projecting regional electricity demand for Saudi Arabia BRIC in flux: Understanding the influence of energy policy uncertainty on foreign direct investment flows Exploring the association between the female gender, education expenditure, renewable energy consumption and CO2 emissions: Empirical evidence from Nigeria
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1