Open AccessRole of Oil Prices and Major Macroeconomic Factors in the Economic Growth of Selected G20 Countries
Author(s) -
Mehmet Çanakçi
Publication year - 2021
Publication title -
international journal of sustainable development and planning
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.29
H-Index - 15
eISSN - 1743-761X
pISSN - 1743-7601
DOI - 10.18280/ijsdp.160214
Subject(s) - economics , balance of payments , oil price , inflation (cosmology) , economic rent , exchange rate , regression analysis , monetary economics , macroeconomics , econometrics , physics , machine learning , theoretical physics , computer science , microeconomics
The research is focused on investigating the influence of oil price fluctuation and different selected macroeconomic indicators on the economic growth of selected G20 countries. The research simply applied descriptive analysis technique as well as regression analysis technique by using a random effect model and Pearson correlation analysis technique to investigate formulated objectives. Results of the research suggested that oil prices and GDP in selected G20 countries have a negative relationship with each other. Results of the research further suggested that the broad money, balance of payment and inflation have a negative impact on the exchange rate of selected G20 countries. These results suggest that it is important for selected G20 countries to make sure to decrease the oil rents and maintain oil prices to have overall positive impact on the economy. Overall, results of the research suggest that a decrease in oil prices can be a significant factor for having a positive influence on the economic growth and progress of selected G20 countries.