Oil Prices And Economic Growth: The Heterogeneity Of Oil-exporting And Importing Countries

Among all counties in the world,China is number one oil consumer;while Russia is the second oil-producing country.Recent surges in volatility in oil prices have serious consequences on economic growth in these countries.The predictable view should hold that both of the countries depend highly on the price of oil but in completely opposite ways.This paper applies the econometric analysis to analyze the impact of the oil prices on the economies of the countries with heterogeneous economic structure.The findings are that although there is a positive relationship between oil price rise and economic activity in Russia,and negative in China,the degree for both countries is not that substantial.The paper concludes with the possible explanation of the results.