World economy and international economic relations

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

Economic Annals-XXI

Economic Annals-ХХI: Volume 166, Issue 7-8, Pages: 11-15

Citation information:
Hasanli, Ya., & Ismayilova, S. (2017). Econometric model of dependence between the oil prices, and the global external debt level and oil production. Economic Annals-XXI, 166(7-8), 11-15. doi: https://doi.org/10.21003/ea.V166-02

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Yadulla Hasanli
D.Sc. (Economics),
Professor,
Director, Scientific Research Institute of Economic Studies,
Azerbaijan State University of Economics
6 Istiglaliyyat Str., Baku, AZ1001, Azerbaijan
yadulla.hasanli@unec.edu.az
ORCID ID: http://orcid.org/0000-0001-9497-5607

Simrah Ismayilova
PhD Student (Economics),
Researcher,
Institute of Economics of Azerbaijan National Academy of Science,
Institute of Control Systems of ANAS
115 H. Javid Ave., Baku, AZ1143, Azerbaijan
simrah.23@gmail.com
ORCID ID: http://orcid.org/0000-0002-9184-8212

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

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%.

Keywords: Oil Prices; Natural Resources; External Debt; World GDP; Global GDP; Econometric Modelling

JEL Classification: C51; G01; H63; Q43

DOI: https://doi.org/10.21003/ea.V166-02

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Received 25.04.2017

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