The purpose of this paper is to examine the causality issue between energy consumption and economic growth for three typical oil-exporting countries: Iran, Kuwait and Saudi Arabia. We use two different test methods to test for causality, namely, the error correction model and Toda-Yamamoto...

Using panel unit root and panel cointegration tests, we investigate the purchasing power parity (PPP) for oil-exporting countries. In addition, we also employ a seemingly unrelated regression estimator to account for possible cross-sectional effect. The test results overwhelmingly reject the...

In this paper, we study the non-linear relationship between oil revenues and real output growth of the Iranian economy during 1959-2007 using a threshold error correction model. The estimation results show that the response of economic growth to oil revenue growth in low regimes of oil revenues...

This paper examines the effects of oil price shocks on industrial production in three oil-exporting countries, namely Iran, Saudi Arabia and Indonesia using annual data for the period 1970-2005. First, the Gregory and Hansen cointegration technique, allowing for the presence of potential...