We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Impact of International Oil Price Shocks on Consumption Expenditures in ASEAN and East Asia

Impact of International Oil Price Shocks on Consumption Expenditures in ASEAN and East Asia
Date:
5 November 2014
Category:
ASEAN, Energy, Trade
Authors:
Dayong Zhang, David C. Broadstock
Tags:
Energy, Trade

Print Article:

 

This paper examines the impact of international oil shocks on consumption expenditure in selected ASEAN and East Asia economies. By including oil shocks into a standard macroeconomic model of consumption theory, one sees the response of consumption to the changes in the international oil price. Empirical results show that oil shocks do affect consumption and there are asymmetrical effects. There are clear differences in the level and direction of the impacts on each of the ASEAN and East Asia economies. These implications shed light on how the idea of regional energy market integration can be a way to share risks and optimise resource allocation. Nonetheless, given the clear disparity and similarity in sub-groups, integration should be implemented while allowing for differentiation in terms of the role each country plays.

ERIA-DP-2014-24

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Online Public Service, Asia, Digital Economy
4 March 2024
Editor(s)/Author(s): Fukunari Kimura, Lurong Chen
(still under ISBN process and under review Chief Economist) The implications of digital[...]
trade, semiconductor trade, trade network, regional trade, COVID-19, ASEAN
23 February 2024
Editor(s)/Author(s): K.P. Prabheesh, C.T. Vidya
This paper examines the global semiconductor industry trade network[...]