Econometric model of dependence between the oil prices, and the global external debt level and oil production

Hasanli Y., Ismayilova S.

ECONOMIC ANNALS-XXI, vol.166, no.7-8, pp.11-15, 2017 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 166 Issue: 7-8
  • Publication Date: 2017
  • Doi Number: 10.21003/ea.v166-02
  • Journal Name: ECONOMIC ANNALS-XXI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.11-15
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

The article comprises theoretical discussion of the influence of the revenues obtained from the exploitation of oil reserves on the external debt level in the countries of the world. Econometric methods are applied to analyse statistical data for 2003-2016 and quantitative characteristics of this influence. It was concluded that rise in oil prices results in growth of the national external debt. We found that 1% growth in oil prices increases the volume of foreign debt to the unit of GDP of the world for 3.17%.