SciELO - Scientific Electronic Library Online

 
vol.9 issue2Fiscal effort in the countries of Latin America and the CaribbeanHorizontal equity analysis of fiscal transfers in Peru author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

Related links

  • On index processCited by Google
  • Have no similar articlesSimilars in SciELO
  • On index processSimilars in Google

Share


Revista Finanzas y Política Económica

Print version ISSN 2248-6046

Abstract

ALONSO, Julio César  and  MARTINEZ-QUINTERO, Diego Alexánder. Oil prices impact on the GDP of the Pacific Alliance Countries. Finanz. polit. econ. [online]. 2017, vol.9, n.2, pp.249-264. ISSN 2248-6046.  https://doi.org/10.14718/revfinanzpolitecon.2017.9.2.3.

This article seeks to determine the effect of oil prices on gross domestic product (GDP) in the member countries of the Pacific Alliance (PA). A structural VAR model and quarterly data are used, which allow concluding that there is a long-term relationship between the international price of oil and GDP in each of the PA member countries. It was found that an unexpected increase in oil prices does not affect the level of economic activity in Peru. For Chile, which is a net importer of oil, a similar shock effect increases GDP, contrary to what is expected in theory. For Mexico and Colombia, net exporters of oil, an unexpected positive oil price shock positively affects GDP; in Colombia, the positive effect is observed in the first six quarters, while for Mexico it is only present in the second and third quarters. These countries’ heterogeneous responses to oil price shocks are evidence of the many challenges that economic policy coordination among PA member countries has to face.

Keywords : Pacific Alliance; oil price; GDP; time series; VAR.

        · abstract in Spanish | Portuguese     · text in Spanish     · Spanish ( pdf )