Do oil prices have an asymmetric impact on economic output in India? Empirical evidence using asymmetric cointegration approach

نویسندگان

چکیده

This study examines the nexus between oil prices (Oil) and economic output (IIP) asymmetrically in Indian context using quarterly data from 1996–1997:Q1 to 2019–2020:Q4. To this end, we have used a nonlinear autoregressive distributed lag (NARDL) model. The main findings of are as follows—firstly, Wald test confirms nonlinearities among negative positive shocks Oil, EX IR long run. Secondly, NARDL model reveals that shock price stimulate IIP, whereas Oil fails influence IIP. strengthens economy by having significant impact on while is insignificant. negatively IIP demonstrates exert asymmetric pressure Concisely, India's more responsive decrease than increase. Therefore, prices-economic has substantial policy implications, particularly for prudent energy India.

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ژورنال

عنوان ژورنال: OPEC energy review

سال: 2023

ISSN: ['1753-0229', '1753-0237']

DOI: https://doi.org/10.1111/opec.12290