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Investigating the Target Revenue Model in the World Oil Market by ARDL Method
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Davood Manzoor   , Aliakbar Mohammadi Samchouli * , Amir Kargar |
| Ph.D. Student, Energy Department, Faculty of Economics, Imam Sadegh (AS) University |
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Abstract: (2443 Views) |
| The target revenue model states that the country's investment needs and oil price play the most important role in determining that country's oil production, and the purpose of this study is to examine mentioned model for OPEC member countries and a number of non-OPEC countries. The way to answer that question is to use the ARDL method in the period 1971 to 2019. The results show that in the long-run Iraq follows the weak model, Saudi Arabia and Libya follow the normal model and Mexico follows the Backward Supply Curve (BSC), and in the short-term, Saudi Arabia follows the normal model and Mexico and Malaysia follow the BSC model. Therefore, it cannot be concluded that all OPEC members follow this model, nor can the existence of this model be ruled out. As a result, it can be said that the target revenue model may not be a good model for forecasting and estimating, but it gives a very good view to policymakers in the oil-related industries. |
Article number: 7 |
| Keywords: Target Revenue Model, OPEC, Non-OPEC, Oil Market, ARDL |
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Type of Study: Research |
Subject:
Special
Received: 2022/02/22 | Accepted: 2023/02/5 | Published: 2023/02/5
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