To the test of economic recovery: The swings in energy resource prices

• Published in: Resources policy 2024-02, Vol.89, p.104593, Article 104593
• Main Authors: Tao, Nan, Wu, Tiantian, Yan, Guo
• Format: Article
• Language: English
• Subjects: Economic indicators; Economic recovery; Financial crises; Oil price
• ISSN: 0301-4207
• DOI: 10.1016/j.resourpol.2023.104593

This paper examines how changes in oil prices impact a wide range of economic indicators worldwide, using empirical data, and a vector autoregressive (VAR) model analyzes oil price volatility. In this paper, we use fast Fourier units and multivariate regression to conduct a Granger causality test and find that volatility from 2001 to 2021 significantly affected economic recovery and spending during that period. Even during the global financial crisis, oil price and corporate investment were two of the most stable economic indicators. The COVID-19 pandemic has caused significant changes in economic activity and energy prices, and oil prices and economic growth are linked to the global financial crisis and COVID-19. In particular, the recent decline in oil prices can be traced back to the COVID-19 pandemic and worldwide economic concerns. Information about the COVID-19 pandemic spread between the oil market and banking activities faster than it did during previous global financial crises or COVID-19 breakouts. The results of this study have comprehensive implications on human understanding. •Examined global economic impacts of oil price volatility from 2001 to 2021.•Significant links found between oil prices and economic recovery/spending.•COVID-19 pandemic caused major changes in economic activity and energy prices.