Volume 5, No.1, January 2017 Issue

The real influences of oil prices changes on the growth of real GDP:
The case of South Africa

Hlompo Panelope Maruping, Itumeleng Pleasure Mongale
pp: 43-55

Abstract

Oil price fluctuation is a cause of concern for most of the economies of the world including South Africa. The premise is that since oil consumption is regarded as one of the major determinants of the economic activities in any country, therefore the price fluctuations have a potential of slowing down the economic growth. The purpose of this study is to analyse the influences of oil price changes on economic growth in South Africa. Determining such a relationship will not only be helpful to the academic community, but also to the policy makers and the international community. The study utilises secondary data to examine quarterly time series data from the year 1990Q1-2014Q1. Several sources of data (websites) like SARB, Quantec, and International Monetary Funds, among others, were considered to find the most relevant data. The model was estimated by using a co-integrating vector autoregressive frame work and it was passed through a battery of diagnostic and stability test. The Generalised Impulse Response Function was employed to examine the dynamic relations among the variables under study. The results show that there is a positive relationship between economic growth and oil prices fluctuations.

Keywords:Oil prices, Economic Growth, co-integrating vector autoregressive, Generalised Impulse Response Function, South Africa
Citation:Maruping, Hlompo Panelope; Mongale, Itumeleng Pleasure (2017), The real influences of oil prices changes on the growth of real GDP: The case of South Africa; Journal of Business & Management (COES&RJ-JBM) Vol.5, No.1, pp.43-55.

Content page
Journal main page

Online Coupon

This work is licensed under a Creative Commons Attribution 4.0 International License.
Journal of Business & Management (COES&RJ-JBM) Volume 5, No. 1, January 2017 ISSN (E): 2306-7179 ISSN (P): 2306-8043
Copyright © Centre of Excellence for Scientific & Research Journalism, COES&RJ LLC.
To make sure that you can receive messages from us, please add the 'centreofexcellence.net' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.