Empirical Economics

, Volume 57, Issue 6, pp 1997–2012 | Cite as

Relative efficiency of oil price versus oil output in promoting economic growth: Is OPEC’s strategy right?

  • Olesia Kozlova
  • Jose Noguera-SantaellaEmail author


A dilemma faced by oil exporting countries is the relative efficiency of the traditional OPEC cartel policy of setting quotas to target a certain crude oil price level versus the policy usually followed by non-OPEC countries of choosing the crude oil output level that maximizes profits, taking the oil price level as given. This paper contributes to the oil and macroeconomics literature by using panel cointegration techniques that consider cross-sectional dependence and structural breaks to study the relative efficiency of these policies to promote economic growth in oil exporting countries.


Oil price Oil production Oil exporters OPEC Economic growth Panel cointegration 

JEL Classification

O40 Q43 


Compliance with ethical standards

Conflict of interest

All authors declare that they have no conflict of interest.

Ethical approval

This article does not contain any studies with human or animal subjects performed by any of the authors.


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsWhittier CollegeWhittierUSA
  2. 2.Departamento de EconomíaUniversidad de Santiago de ChileSantiagoChile

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