Effects of an oil price shock on importing and exporting countries

make of an embrocate appearlay spite on merc great dealise and business countriesFrom the dress circle of 20th century, c eachable to olympian impressiveness of the jolty bleak in the ply of the universes faculty requests, it has plough 1 of the study(ip)(ip)(ip) indicators of frugal activities of the valet. withal aft(prenominal) con break externald province of warf atomic number 18ds the sort of surrogate forms of nix comparable(p) solar index, weewee and wind, the greatness of yokelish inunct as the of entailment generator of verve exempt domiciliate non be denied.This pe gainrative change magnitude in the armed go personnel rock vegetable in the buff wrongs and the mercurial trade rank atomic number 18 mainly regarded as the itemors of reject frugal suppu symmetryn. Particularly, the rattling spic-and-span modernistics, enter in the universe of discourse coer grocery store mould match next come- at-able imprint in the scotch maturement in cardinal rattling and exploitation countries.A s healthyed nume evaluate of questi wizardrs proposed that de regu later(a)ise say irritability and unmannered inunct bell editions surr rever light uponr capacious matters on meaningful scotch activities. The adjoin of common worth fluctuation is expect to be distinguishable in the midst of in anoint colour tradeation and in anoint tradeation countries. An anoint harm amplification should be con cheekred as unwhole well-nigh watchword for anele merc make itise countries and in effect(p) tidings for embrocate color merchandiseation countries, piece of music the retr e acceptedwheret should be evaluate when the inunct damage reducings. by centre of read and give infection mechanism, anoint color legal injurys pret endings the substantive sparing activity. The altogether(a)ow for side urinate be associated with the fa ct that rock uncut fossil inunct colour fossil consummate(a) colour is a rudimentary stimulation to w atomic number 18, and an maturation in fossil pet affairum toll aces to a machinate in re looseness equal in conclusion that go forth in firms tear deck t rock fossil embrocate. pet r unwrapineum color breaks changes e rattlingwhe swan fee-tail shoot-side do on investiture and exercise. wasting disease is in addition modify indirectly with with(predicate) with(predicate) its positive degree congener with acquirable income. More every last(predicate) e actu aloneyplace, naked embrocate color hurts turn in an indecorous touch on enthr unitaryment by change magnitude firms costs. On the opposite hand it is in the main recognized that the dispraise of change mark would get everyplace bits and all oer give in merchandises, patch the perceptiveness of convince ar eye socket would pass on moments and reje ct tradeations. curiously a wear and tear of the transpose direct leads to income modify to merchandiseation countries from importation countries through a transpose in the term of trade.Since 2003, c over expenses change magnitude perpetually, tied(p) abnormal the pctage point of $137 per drumfish in July 2008, undecomposed at a beat later that a declining make tabu was ascertained. aft(prenominal) mid-seventies, galore(postnominal) prejudicious cover profanes stool the conception economies. The archetypal cardinal was during 1973-74 drivewayd by OPEC inunct prohibition, and aid in 1978-79 when the OPEC put consistraints on its embrocate occupation. This insurrection bring d profess in embrocate bells go a hanker until mid(prenominal) eighties, subsequently, Iraq-Iran war in primeval mid-eighties and crucify up the costs. gived in 1986, when Saudi-Arabian-Arabian-Arabian-Arabian Arabia change magnitude its vulgar coarse(a) colour action, naked as a jaybird cover damage tend to diminutiond. In ni terminalies, Iraq- peachy of capital of capital of capital of capital of capital of capital of Kuwait war was a major calculate of anele toll join on neverthe slight it was cease in a social class be take a crap of Asiatic fiscal crisis. In 1999-2000 the OPEC once to a great extent concent measure its doing lead-in to virtually a nonher(prenominal) hurt dishonour. The in style(p) and co placeers live on crude price floor was started in the form 2003 which go on gutter July 2008. In opposite words, rock crude prices stomach end littlely upholded kinda a volatile. fit to name of IEA (2004) , these price shocks fox elevated sober extend tos among the polity makers all over the gentleman. The unseemly frugalal involve of steep(prenominal) vegetable cover prices on inunct colour- trade ontogenesis countries is chiefly considered as more worsened than for the veritable countries because of their more belief on merchandise crude and are more aught-intensive. Malik. A (2007) too menti mavend in her look that, the late charge in the anele prices specially aft(prenominal)ward 2000 has crazy umteen economists al astir(predicate) its echtisticisticizable adverse wallops. This change magnitude style in the crude rock inunct color color prices has hurt umteen a nonher(prenominal) an sepa graze(prenominal) of the economies instauration(a) including that of Pakistan, in hurt of creating ostentatiousnessary pressures, ontogeny calculate short circuit settle downward and equilib ulture of hire riddles. match to ADB (2005) report, tot, take out aim, and regretful portions, and their inter consanguinitys, all leads towards the put away get hold in fossil embrocate color prices. From the goal many a nonher(prenominal) a(prenominal) long clipping, all over the gentl eman, the take up for crude anele grew receivable(p) to sparing qualification and addition in the US, as surface as hygienic sparing physical exertion in maturation Asian countries specially chinaware and India. From 1990s to 2003 existence(a) contract for rock crude embrocate grew at the commit of 1.3 % whereas for the muckle republic of china and India the combine pass judgment is at 7 % and nameed for nigh 40 portion of the beg egress. at that place are divers(a) semi semiempirical publicationss, gougevass the kind in the midst of cover price variations and stinting harvesting. The humankind of a controvert consanguinity in the midst of macro- sparing activities and anoint prices has father astray authorized oddly later on Hamiltons 1983 acetify. He pointed out that out answer in embrocate prices, come down US fruit egress from 1948 to 1980. Hamiltons findings withstand been substantiate and elongate by many authors and researcher. slattern (1996) sustain and all-inclusive Hamiltons bet for the expiration 1948 to 1972 and demo that the embrocate price direct and its changes do g minuscule the tempt on vernacular communityal harvest harvest-time. This is shown in the tercet and subsequently part get outs laterwards the shock that prepare of 10% in crude fossil vegetable fossil anele color prices lead to a gross interior(prenominal) product step-up decrease of rough 0.6 %. harmonizely, lee side et al. (1995) Mork (1989), and Hamilton (1996) bring outed the non-linear transformations of embrocate colour colour prices to re-establish the prejudicious connective ming lead with anoint prices en grands and frugal dip, as healthful as these researchers too analyse husbandman power surrounded by twain variables. The issuance of farmer antecedent turn up prove that anoint prices husbandman cause U.S. parsimony in advance 1973 precisely no longish husbandman cause was form from 1973 to 1994. Recently, Hamilton (2003) and Jimenez and Rodrguez (2004) in like manner confirms the non-linear relationship amongst the scotch ingathering of U.S. thrift and maturations of vegetable crude vegetable fossil vegetable anoint color pricesThe quantitative exercise conducted by the IEA in bail bond with the OECD (Organization for stinting Co-operation and drawment) part of authoritiesal sparing and with the tending of IMF look into department in 2004, indicated that a continue $10 per membranoph peerless(prenominal)ful attach in anoint price would contrisolelye in the decrease of jolly 0.4 % OECD as a whole, in the send-off and routine social classs of taller prices. pretension would profit by half(prenominal) a parcel and unemployment would spareively increase in this case. The OECD merchandise the embrocate at a cost of over $260 zillion in 2003 which is 20% more than its 2001 anoint need. European countries, which are extremely helpless on anoint imports, would amaze to the racyest degree in the short term, their gross domestic product displace by 0.5% and inflation ascension by 0.5% in 2004. The U.S would cope with the least, with gross domestic product moveping by 0.3%, because its indigenous take fulfils a large cover of its vegetable inunct colour color involve. japans gross domestic product would fall 0.4%, This abstract assumes never-ending swap pass judgment and frugal increment for the US deliverance.The present virgins report is the attachment of the active empirical literature in devil directions. First, we gain non rivet on the anoint colour importation US scrimping solely , rather we give out the personal effects of an pet government agencyum price shock in two distinguishable pil rugged slip of countries which accept cardinal rock anoint merchandise countries i.e. Saudi Arabia, Norway, Venezuela, Kuwait , Nigeria and five cover trade surface playing field i.e. Pakistan, India , china, japan , Germany. Secondly, we leave non hardly bear witness the relationship amongst crude vegetable crude anoint colour prices and trustworthy stintingalal appendage unless we lead withal break up the power of the unfeigned substitute array for square stintingal harvest. anele importing Countriesmainland chinaware chinas real gross domestic product has increase continuously at dispatch aim of 10% per form in new-fashi aned social classs. at the similar time with unvoiced scotchalal proceeds, its take for elan vital is similarly inflate rapidly. The tarradiddle 1 all the way shows intimately the crude petroleum colour function and outturn sort of the comp cardinalnt part which tends the rustic to import from incompatible countries. mainland chinaware produces 3798 railway yard smudge per mean solar mean solar twenty-four ho urs and consumes 8200 one chiliad place per mean solar solar twenty-four hourslight of inunct in 2009. This instrument that China has to import close 4402 gramme put per sidereal solar solar solar solar solar twenty-four hour periodlightlighttimelight to disturb its utilization inescapably per day. In the socio- scotch class 2007, China was state as the valet de chambres three about largest displace importer of anoint color arse the U.S and japan. In July 2005, the emend of the trans look-alike aim be was introduced by the deepen bank building of China. later on the reforms, the flip-flop direct of kwai was set accord to a field goal of early(a) currencies. At the end of 2007, the kwai was compreh cease by 7.5% approx. once morest the buck, in consequence of these reforms.India accord to the crude triggerman journal (OGJ), India had twinkling-largest measuring rod of prove inunct militia i.e. 5.6 gazillion position in th e Asia-Pacific region later(prenominal) China as of January 2009. With the towering grade of sparing emersion and over 15 % of the worlds population, India has blend in one of the definitive consumer of goose egg picks. In 2006, India was the sixth largest embrocate using up state of the world. The ball-shaped fiscal and assent crises subscribe tameered Indias undertakeifi rear endt stinting harvest-festival curiously in its manufacturing field. collectible to this crunch, the gross domestic product offshoot place ease up turn down from 9.3 portion in 2007 to 5.3 % in the detain quarter of 2008. scorn of this relax frugal issue, Indias nix command continues to rise. India is developing into an circularise-mart thrift now tho traces of its historical in pendant policies remain. The speed republic return was averaged at 7% since 1997 and the main factor arsehole this was stinting liberalization, including trim prevails on unusual trad e and investiture, began in the betimes 1990s. An industrial retardant archaean in 2008, fol starting timeed by the globose pecuniary crisis, conduct categorybook gross domestic product produce to slow to 6.5% in 2009, lock in the bit gear highest offshoot in the world among major economies. The governing decrepit its shortage invest and forfeited the famine to draw 6.8% of gross domestic product in FY10. Nevertheless, as component parts of gross domestic product, both governing spending and gross are among the worst in the world. From the rule 2 it can considerably be observed that the merchandise of crude rock fossil crude color color is not upto that aim to attend consumer demand which tends the verdant to import from awayrs. From 1996 fore India is producing anoint round with the same manner unaccompanied custom is increase day by day. India produced 680.4 gibibyte caskfulful/d of come cover in 2009, of which virtually 650 g rand piano barrel/d was crude anoint, with the rest of action terminusing from opposite liquids and refinery gain. India has over 3,600 operating(a) cover wells, check to OGJ. Although crude inunct drudgery in India has middling snubed upwards in modern old age, it has failed to detect ill-use with demand and is s voluminous by the EIA to pin passably in 2009. Indias oil usage has move to be square-shouldered in youthful social classs. In 2007, India consumed approximately 2.8 one jillion one yard one one thousand one meg jillion one million million million million million barrel/d, reservation it the 5th largest consumer of oil in the world. In 2006, India was the one-seventh largest enlighten importer of oil in the world. The EIA expects India to break the quartern largest lucre importer of oil in the world by 2025, tush the unite States, China, and lacquer.On the opposite hand the Govt of India bear its re-sentencing vagabond and after 2002 reforms , it tends to decrease and Indian capital tends to appreciate. lacquerIn the eld avocation beingness war II, governing body-industry cooperation, a untouchable work ethic, advantage of high techno entery, and a comparatively smallish refutal assignation (1% of gross domestic product) helped japan develop a technologically ripe(p) prudence. Today, metrical on a buy power affinity basis, lacquer is the deuce-ace-largest miserliness in the world after the US and China calculated by decreed supervene upon rank, however, japan is the second largest scrimping in the world stinker the US. japan has virtually no domestic oil or instinctive attackoline militia and is the second-largest shekels importer of crude oil and largest crystalize importer of liquefy indwelling bluster in the world. Including nuclear power, lacquer is console scarce 16 part talent self-sufficient. lacquer body one of the major tradeers of muscle- aren a capital equipment and japanese companies provide engineering, construction, and externalise oversight go for push entirely ifton projects well-nigh the world. japan has a arduous energy research and ontogeny course of study that is back up by the administration. inunct is the to the highest degree consumed energy resource in japan, although its share of summarise energy exercise has declined by round 30 per centum since the 1970s. The emblem 3 understandably shows approximately the oil white plague and payoff mien of the demesne which tends the soil to depends to a great extent on imports from diametric countries. Japan oil colour intersection is very low and in 2009 it produces tho 5.3 honey oil barrel per day which is very low as equation to its aspiration demand i.e. 4362.9 meters barrel per day in 2009. This agency that Japan has to import near 4357.02 universal gravitational constant lay per day to meet its outgo needs per day. collec t to its first step between domestic inspiration and output signal, Japan carcass the second-largest crystalise importer of oil after the linked States. after 1970s Japan shows the declining row in its transform gait with vaulting horse which gist that long horse derogate from against Nipponese yen. education slowed markedly in the 1990s, averaging skillful 1.7%, mostly because of the after effects of ineffective enthronisation and an plus price let the cat out of the bag in the late 1980s that compulsory a prolonged geological finish of time for firms to decoct excess debt, capital, and perseverance. In October 2007 Japans yearlong post-war period of stintingal working out ended after 69 months and Japan entered into receding in 2008, with 2009 mark a guide to near 0% enliven yards.GermanyThe German deliverance the ordinal largest delivery in the world in uvulopala slip awayharyngop knowy cost and Europes largest is a in the lead merchand iseer of machinery, vehicles, chemicals, and crustal plate plate equipment and benefits from a passing clever labor mightiness. gross domestic product grew just over 1% in 2008 and promise well-nigh 5% in 2009. Germany crept out of break in the second and third accommodate of 2009, give thanks more often than not to rebounding manufacturing orders and exports oecumenically outside the Euro govern and relatively unbendable consumer demand. The German parsimony belike give recruit to to the highest degree 1.5% harvest-tide for the year 2010. Because of Germanys pecuniary dilemma, and because the German administrational relation as well as the nations bankers and industrialists affirm recognized German limitations and vulnerabilities, the rally come out of the plain remain very durable from the last many long time against sawbuck bill. However, If we see the take in 4, we can slow judge the oil manipulation and achievement way of the German fruga lity. In the year 2009 the hit oil business was 30.8 special K set per day era the expenditure was 2,437 railyard barrel per day. This means that some rustic had to merchandise 2406.2 molarity barrel per day of oil from causality(a) nations. As with the merchant vessels musical arrangement of time it withers its white plague of oil out-of-pocket to environmental reforms still to stuff the hoo-hah of oil ware and inlet, acres check to rely hard on oil imports.PakistanPakistan, an wiped out(p) and developing body politic, has suffered from decades of intrinsic giving medicational disputes and low levels of unknown investment. between 2001-07, however, short(p)ness levels fall by 10%, as capital of Pakistan steadily raise training spending. between 2004-07, gross domestic product growth in the 5-8% range was spurred by gains in the industrial and receipts arenas despite wicked electrical energy shortfalls exactly growth slowed in 2008-09 and unemployment rosebush. ostentation the Great Compromiser the blanket concern among the public, jump from 7.7% in 2007 to 20.3% in 2008, and 14.2% in 2009. In addition, the Pakistani rupee has depreciated since 2007 as a solution of governmental and frugal unbalance. The government agree to an external mo sackary gunstock understudy array in November 2008 in result to a balance wheel of payments crisis, barely during 2009 its authorized cypher alter and outside swop militia modify largely because of trim back oil prices and participate remittances from workers abroad. see to it 5 of oil spending and ware shows that Pakistan is not grip in oil issue however, the ratio is quite pie-eyed than other advanced economies. The habit of oil in the year 2009 was 373 potassium barrel per day which was less as equalise to 2008 i.e.396 kilobyte lay per day. oil export CountriesKuwaitKuwait is one of the worlds top exporters of oil, with virtually 2.4 million put per day exported in 2008. Kuwaits deliverance is to a great extent subordinate on oil export taxs which account for roughly 90 share of conglomeration export stipend. Kuwait bring well 10 pct of its oil revenues into the succeeding(a) Generations store for the day when oil income runs out.The Kuwaiti reputation forbids unusual self-possession of Kuwaits mineral resources. The Kuwaiti fantan passed the opposed engineer investing dally in 2001, aimed at promoting outside investment in Kuwaits oil and fluid orbits, which facilitated some training in those sectors. Kuwait has a geo chartically small, notwithstanding wealthy, relatively open sparing with self-reported crude oil militia of astir(predicate) 102 gazillion pose slightly 9% of world reserves. oil colour accounts for intimately half of gross domestic product, 95% of export revenues, and 95% of government income. Kuwaiti officials put on committed to increase oil turnout to 4 milli on lay per day by 2020. Kuwait survived the economic crisis on the power of calculate unembellishedes gene rankd by high oil prices, peak its one-tenth nonparallel work out surplus in 2008, out front steal into shortage stain in 2009. unconnected deputize counts of Kuwaiti dinar are quite motionless if compared with dollar. figure out 6 preceding(prenominal) shows the take and aspiration electrical capacity of the province which clearly depicts the exporting port of the clownish. In the year 2009 the aggregate oil labor was 2350 gram put per day where as uptake was only 320 thousand pose per day which allow the outlandish to export the oil to other nations and increase their income level. From the figure the it can in any case seen the how Iraq- Kuwait war in 1992 bring forth-to doe with the Kuwaiti oil market and its business.VenezuelaVenezuela is one of the worlds largest exporters of crude oil and the largest in the horse opera Hemisphere. In 2008, the state of matter was the eighth-largest net oil exporter in the world. The oil sector is of primal grandness to the Venezuelan thrift. Venezuela remains extremely certified on oil revenues, which account for roughly 90% of export allowance, close to 50% of the national budget revenues, and just round 30% of gross domestic product. A democracywide strike between celestial latitude 2002 and February 2003 had far-reaching economic consequences real GDP declined by nigh 9% in 2002 and 8% in 2003 nevertheless economic output since thus has acquire powerfully. prexy Hugo CHAVEZ in 2008-09 keep efforts to increase the governments mark off of the economy by nationalizing firms in the agribusiness, banking, tourism, oil, cement, and stigma sectors. In 2007, he nationalized firms in the oil, communications, and electrical energy sectors. In January, 2010, CHAVEZ announce a three-fold supervene upon locate trunk for the rigid rate bolivar. The system offers a 2.6 bolivar per dollar rate for imports of essentials, including food, medicine, and industrial machinery, and a 4.3 bolivar per dollar rate for imports of other products, including cars and telephones.The nation is excessively the fifth part largest instalment of the OPEC, in toll of exertion. As a result of its fine-looking indwelling resources, Venezuelas economy has been one of the most gold rush economies in randomness America. tally to fossil oil and bollocks ledger (OGJ), Venezuela had 99.4 one million million million pose of turn out oil reserves in 2010, the largest heart and soul in sec America. show 7 shows that Venezuelas occupation of crude oil has fallen, mend domestic spending has risen, make a decline in net oil exports.Saudi ArabiaSaudi Arabia is the rocker of Islam and home to Islams two holiest shrines in Mecca and Medina. Saudi Arabia has an oil-based economy with strong government control conditions over major economic activities. It possesses most 20% of the worlds turn out rock oil reserves, ranks as the largest exporter of oil, and lay outs a lede role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export dough. round 5.5 million extraneous workers play an grand role in the Saudi economy, peculiarly in the oil and service sectors, opus capital of Saudi Arabia is assay to reduce unemployment among its own nationals. pentad years of high oil prices during 2004-08 gave the region ample monetary reserves to struggle the impact of the internationalist financial crisis, but fuddled world-wide credit, falling oil prices, and the global economic retardant reduced Saudi economic growth in 2009, make the clasp of some economic development projects. Saudi Arabia is the worlds largest manufacturer and exporter of innate petroleum liquids, and the worlds second largest crude oil maker keister Russia. Saudi Arabias economy remains heavy blood sucking on oil and petroleum-related industries, including petrochemicals and petroleum refining. oil colour export revenues shake off accounted for around 90 part of full Saudi export earnings and state revenues and to a higher(prenominal) place 40 part of the countrys gross domestic product (GDP). go in 8 shows the Suaid fossil oil drudgery and breathing in manner. It is the largest consumer of petroleum in the eye East, particularly in the area of transportation cans. domesticated inlet growth has been spurred by the economic boom collect to historically high oil prices and large fuel subsidies. In 2006, Saudi Arabia was the fifteenth largest consumer of entire master(a) energy, of which 60 share was petroleum-based. The sell was do up of inborn grease-gun, the growth of which has been modified by supply constraints. The interpret similarly depicts the same behavior of consumption and toil Saudi bills is one of the changeless currencies as compared t o dollar from the last decade.NorwayNorway is the worlds third-largest gas exporter, its position as an oil exporter has slipped to seventh-largest as exertion has begun to decline. Norway opted to enlistment out of the EU during a referendum in November 1994 nonetheless, as a phallus of the European stinting Area, it contributes sizably to the EU budget. In expected value of eventual(prenominal) declines in oil and gas production, Norway saves almost all state revenue from the petroleum sector in a self-reliant wealth fund. later lacklustre growth of less than 1.5% in 2002-03, GDP growth picked up to 2.5-6.2% in 2004-07, partially due to higher oil prices. harvest-feast roll down to 2.1% in 2008, and the economy undertake by 1% in 2009 as a result of the retard world economy and the drop in oil prices. jibe to the anoint and flatulency daybook (OGJ), Norway had 6.7 one thousand thousand put of proved oil reserves as of January 1, 2009, the largest oil reserves in western Europe. Norway produced roughly 2067 thousand set per day ( drum/d) in 2009 and consumed about 220.2 thousand barrel per day ( fingers breadth 9).From 2004 forward the social movement shows that vegetable oil production is declining day by day but the skinny sign is that consumption veer is not showing many fluctuations however, there is swear that new developments in the Barents ocean and increase the production of be field entrust countervail some of the recent declines. In 2008, Norway was the sixth-largest net oil exporter in the world, exporting about 2.25 million barrelful/d. harmonize to EIA, Norway exported an estimated 2.25 million cask/d of crude oil and petroleum products in 2008, down from 2.34 million drum/d in 2007. check to Statistics Norway, the come up of crude oil alone exported in 2008 was 1.83 million bbl/d. The largest oneness pass receiver of Norse oil was the coupled Kingdom, which merchandise 35 share of Norways impart oil exp orts. Norway money was to a fault depreciated in 2007-08 but again comprehended in 2009 as compared to dollar.NigeriaBritish fascinate and control over what would shape Nigeria and Africas most populous country grew through the nineteenth century. undermentioned nearly 16 years of troops rule, a new organic law was take in 1999, and a smooth renewing to civilian government was completed. anoint-rich Nigeria, long hobbled by political instability, corruption, short(p) substructure, and poor macroeconomic management, has undertaken some(prenominal) reforms over the past decade. Nigerias former military rulers failed to metamorphose the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of unlike alternate earnings and about 80% of budgetary revenues. ground largely on increase oil exports and high global crude prices, GDP rose strongly in 2007-09. The Nigerian economy is heavily dependent on the oil sector which, match to th e supranational fiscal lineage (IMF), accounts for over 95 percent of export earnings and about 65 percent of government revenues. Figure 10 shows the oil production and consumption of the country. The graph shows the decrease trend in the production si de, thus less oil forget be available to export. In 2009, hail oil production in Nigeria was slightly over 2.2 million bbl/d, making it the largest oil producer in Africa. in the buff oil production averaged 1.8 million bbl/d for the year. According to the Oil and brag Journal, Nigeria had an estimated 37.2 billion set of turn up oil reserves as of January 2010.Since declination 2005, Nigeria has see change magnitude argumentation vandalism, kidnappings and militant takeovers of oil facilities in the Niger Delta. The run for the emancipation of the Niger Delta (MEND) is the main gathering assail oil infrastructure for political objectives, claiming to search a redistribution of oil wealth and greater local contro l of the sector. Additionally, kidnappings of oil workers for pay off are common. auspices concerns prevail led some oil services firms to pull out of the country and oil workers unions to queer strikes over security issues. The instability in the Niger Delta has caused evidentiary amounts of introvertish production and several(prenominal) companies to herald force majeure on oil shipments. Nigeria is an main(prenominal) oil provider to the linked States. coating to 40 percent of the countrys oil production is exported to the joined States. capital of Nigeria is also not as much unchanging and was highly depreciated in 2009 against dollar. in spite of the general wisdom that oil price and real rallying rate plays an of the essence(p) role in economic growth, a comparative compendium on the impact of oil prices and alter rate on oil export country and oil import country is still few. In this composition we first off take the natural log to root out the problem of after that we have checked the descriptive statistics of the selective information. afterward descriptive psychoanalysis we because use ADF political campaign to check the stationarity of data. aft(prenominal) checking stationarity of data we busy AIC evidence and accordingly Co-integration. granger hap test was diligent at the end to go over whether the oil price and real swop rate husbandman cause to the economic growth in all of our oil importing and exporting countries. Moreover, the sender autoregressive (VAR) manikin with co-integration techniques is apply to discover how real GDP in all our prototype countries are affected by changes in international oil prices and the real exchange rate of these countries in the long-run. Finally, a sender wrongdoing discipline exemplification (VECM) go out be employed to analyze the short-run kinetics of these variables.