Changes in Oil Demand in Oil-importing Developing Countries: The Case of the Philippines

Oil and energy use in developing countries has undergone a significant evolution in the past several years. For nearly all oil-importing developing countries (OIDCs), the two sharp oil price increases in 1973-1974 and 1978-1979 brought a large rise in import bills. With the 1973-1974 price rise, there is some indication that short-run impacts on the external economy were handled without major disruption (Dunkerley and Steinfeld, 1980). The second oil price increase, combined with worldwide recession and the diminishing world trade, caused economic growth to stagnate far more than did the first price increase (tiara, 1984).