The Effect of Oil Prices on the Global Competitiveness of National Economies

Nazia Iqbal Hashmi

Abstract


The effect of various parameters on the competitiveness of the national economy has been studied in various articles, yet the effect of resource prices has been barely investigated. The aim of this article is to study the effect of oil prices on the international level competitiveness of oil manufacturers and declined nations. According to a regression analysis of sustainable panel data based on annual data of 50 countries from 2005 to 2020, the growth rate of GCI (Global Competitiveness Index) is crude oil compared to GDP growth rate. It is noticed that prices fell far below the annual growth rate. Oil-exporting countries are twice as strong as non-oil-exporting countries. And the proportion of employees in average labour productivity, total factor productivity and total population increases GCI high-tech exports and total capital formation. Exports are less globally competitive than non-oil exporters due to rising global crude oil prices.

Keywords: Oil prices, Global Competitiveness Index, Panel Data

JEL Classifications: Q41, C12, F63

DOI: https://doi.org/10.32479/ijeep.11254


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