Hydrocarbon exploitation and macroeconomic performance: a structural var approach for Basilicata1

Author/s Floriana Florestano
Publishing Year 2013 Issue 2013/1 Language English
Pages 28 P. 147-174 File size 810 KB
DOI 10.3280/EFE2013-001008
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

The impact of the energy sector on the economy is large. Energy in all its forms (fuel, gas, minerals etc) is a crucial input of production and also of growth. This explains why it is important to analyze the relationship between macroeconomic performance (of a country, region, area) and energy. And this is even more relevant for countries rich of natural resources. Italy is the 4th hydrocarbon producer in Europe (after Norway, UK and Denmark) and more than 70% of oil its oil production comes from Basilicata, one of its smallest regions. Thus, the main aim of this work is to study the relationship between hydrocarbon extraction and GDP, employment and value added in construction in Basilicata. Overall, we obtain consistent empirical results independently of the methodologies adopted. The analysis showed that there is a very weak evidence that hydrocarbon exploitation has produced growth in Basilicata.

Keywords: Hydrocarbon, local content, macroeconomic performance, VAR analysis JEL classification:

Jel codes: Q43, E0, R11

  1. Istat (2007). Classificazione delle Attività Economiche ATECO, ISTAT.
  2. Auty R. M. (1990) Resource Based Industrialization. Oxford: Clarendon Press.
  3. Auty R. M. (1993). Sustaining Development in Mineral Economies; The Resource Curse Thesis. New York: Oxford University Press. DOI: 10.4324/9780203422595
  4. Assomineraria (1999). L’Italia, Paese di Idrocarburi. Libro Bianco sull’Esplorazione e Produzione di Idrocarburi in Italia. Roma: Assomineraria.
  5. Auty R. M. (2001). The Political State and The Management of Mineral Rents In Capital-Surplus Economies: Botswana and Saudi Arabia. Resources Policy, 27: 77-86. DOI: 10.1016/S0301-4207(01)00008-3
  6. Barbier E. B. (2003). The Role of Natural Resources in Economic Development. Australian Economic Papers, Wiley Blackwell, 42: 253-272.
  7. Bekhett H. A., Othman N. S. (2011). Causality Analysis Among Electricity Consumption, Consumer Expenditure, Gross Domestic Product (GDP) and Foreign Direct Investment (FDI): Case Study of Malaysia. Journal of Economics and International Finance, 3: 228-235.
  8. Bollettino Ufficiale degli Idrocarburi e la Geotermia, Anno L, n.1.
  9. Cappuccio N., Orsi, R. (2005). Econometria, Il Mulino.
  10. Chevalier J. M., Ouédraogo N. S. (2009). Energy Poverty and Economic Development, New York: Palgrave Macmillan, 115-144.
  11. Coers R. J., Sanders M. (2012). “The Energy-GDP Nexus: Addressing an Old Question With New Methods”, Economics Working Paper Number 12, Utrecht School of Economics.
  12. Dickey D. A., Fuller W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74: 427-431.
  13. Engle R. F., Granger, C. W. J. (1987). Co-Integration and Error Correction: Representation, Estimation and Testing. Econometrica, 55: 251-276. DOI: 10.2307/1913236
  14. Glasure Y. U., A. R. Lee (1997). Cointegration, Error-correction, and the
  15. Relationship Between GDP and Energy: The case of South Korea and Singapore. Resource and Energy Economics, 20: 17-25. DOI: 10.1016/S0928-7655(96)00016-4
  16. Granger C. W. J. (1969). Investigating Causal Relation by Econometric and Cross-Sectional Method. Econometrica, 37: 424-438. DOI: 10.2307/1912791
  17. Granger C. W. J. (1988). Some Recent Developments in a Concept of Causality. Journal of Econometrics, 39: 199-211. DOI: 10.1016/0304-4076(88)90045-0
  18. Hamilton J. D. (1994). Time Series Analysis, Princeton University Press.
  19. International Energy Agency (2009). Energy Policies of IEA Countries, Italy Review, IEA.
  20. International Petroleum Industry Environmental Conservation Association (2011). Local Content Strategy, IPIECA.
  21. Istat (2010). Italian Statistical Abstract 2010, Roma, ISTAT.
  22. Johansen S. (1988). Statistical Analysis of Cointegration Vectors. Journal of EconomicDynamics and Control, 12: 231-254. DOI: 10.1016/0165-1889(88)90041-3
  23. Johansen S. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59: 1551-1580. DOI: 10.2307/2938278
  24. Kraft J., A. Kraft (1978). On the Relationship Between Energy and GNP. Journal of Energy and Development, 3: 401-403.
  25. Lütkepohl H. (2004). Recent Advances in Cointegration Analysis. Economics WorkingPapers ECO2004/12, European University Institute Economics.
  26. Lütkepohl H. (2005). New Introduction to Multiple Time Series Analysis, Springer. DOI: 10.1007/978-3-540-27752-1
  27. Lee C. C., Chang C. P. et al. (2008). Energy-Income Causality in OECD Countries Revisited: The Key Role of Capital Stock. Energy Economics, 30: 2359-2373. DOI: 10.1016/j.eneco.2008.01.005
  28. Lee C. C. (2005). Energy Consumption and GDP in Developing Countries: A cointe-grated Panel Analysis. Energy Economics, 27: 415-427. DOI: 10.1016/j.eneco.2005.03.003
  29. Leonardi R., Putnam, R. D., et al (1987). Il caso Basilicata: l’effetto regione dal 1970 al 1986. Bologna: il Mulino.
  30. Liccione R. (2000). Petrolio in Basilicata: Opportunità e Rischi, Consiglio Regionale della Basilicata. Quaderni, Potenza.
  31. Masih A. M. M., R. Masih (1996). Energy Consumption, Real Income and Temporal Causality: Results from a Multi-Country Study Based on Cointegration and Error-Correction Modeling Techniques. Energy Economics, 18: 165-183. DOI: 10.1016/0140-9883(96)00009-6
  32. Mehrara M. (2007). Energy Consumption and Economic Growth: The Case of Oil Exporting Countries. Energy Policy, 35: 2939-2945. DOI: 10.1016/j.enpol.2006.10.01
  33. Mehrara M. (2007). Energy-GDP Relationship for Oil-Exporting Countries: Iran, Kuwait and Saudi Arabia. OPEC Review, March. DOI: 10.1111/j.1468-0076.2007.00173.x
  34. Ministero dello Sviluppo Economico-Dipartimento dell’Energia (2010). Rapporto Annuale 2011, MSE.
  35. Narayan P. K., Smyth R. (2008). Energy Consumption and Real GDP in G7 Countries: New Evidence From Panel Cointegration with Structural Breaks. Energy Economics, 30: 2331 - 2341. DOI: 10.1016/j.eneco.2007.10.006
  36. Narayan P. K., Smyth R. (2005). Electricity Consumption, Employment and Real Income in Australia Evidence from Multivariate Granger Causality Tests. Energy Policy, 33: 1109-1116. DOI: 10.1016/j.enpol.2003.11.010
  37. Nelson C. R., Plosse C. (1982). Trends and Random Walk in Macroeconomic Time Series: some Evidence and Implications. Journal of Monetary Economics, 10: 139-162. DOI: 10.1016/0304-3932(82)90012-5
  38. Nomisma Energia (2012). Tassazione della produzione di gas e petrolio in Italia: un confronto. Bologna: Nomisma Energia.
  39. Percoco M. (2007). Petrolio e Sostenibilità Analisi Economica e Politiche di Sviluppo Locale per la Val d’Agri, Consiglio Regionale della Basilicata.Quaderni, Potenza.
  40. Rifkin J.(2011). The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy and the World. New York: Palgrave Macmillan.
  41. Ruhul A. S., Shuddhasattwa R., et al.(2008). Causality and Dynamics of Energy Consumption and Output: Evidence from non-OECD Asian Countries. Journal of Economic Development, 33:1-26.
  42. Sims C. A. (1972). Money, Income, and Causality. American Economic Review, 62: 540-552.
  43. Sims C. A. (1980). Macroeconomics and Reality. Econometrica, 48: 1-48. DOI: 10.2307/1912017
  44. Stern D. I. (1993). Energy and Economic Growth in the USA: A Multivariate Approach. Energy Economics, 15: 137-150. DOI: 10.1016/0140-9883(93)90033-N
  45. Stern D. I. (2000). A multivariate cointegration analysis of the role of energy in the US macroeconomy. Energy Economics, 22: 267-283. DOI: 10.1016/S0140-9883(99)00028-6
  46. Vlahinic-Dizdarevic N., Zikovic S. (2010). The Role of Energy in Economic Growth: the Case of Croatia. Faculty of Economics of Rijeka, 28: 35-60.
  47. Zivot E., Wang J. (2006). Modeling Financial Time Series with S-Plus, Springer

Floriana Florestano, Hydrocarbon exploitation and macroeconomic performance: a structural var approach for Basilicata1 in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 1/2013, pp 147-174, DOI: 10.3280/EFE2013-001008