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| Nabil Alimi and Nabil Aflouk |
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| ''The threshold effect of oil-price shocks on economic growth'' |
| ( 2017, Vol. 37 No.3 ) |
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| This paper investigates the effects of positive and negative oil price shocks on economic growth in GCC economies over the period 1980 - 2015, using the Panel Smooth Transition Regression (PSTR) model. The findings confirm that firstly, the relationship between economic growth and oil price shocks is non-linear and it is characterized by the presence of a threshold effect. Secondly, the effect of the oil price shock is larger than as long as it is below the threshold level. |
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| Keywords: Economic Growth, oil price shocks, PSTR model |
JEL: O4 - Economic Growth and Aggregate Productivity: General
C2 - Single Equation Models; Single Variables: General |
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| Manuscript Received : Mar 27 2017 | | Manuscript Accepted : Aug 31 2017 |
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