Oil price shocks drive Libyan economic growth, shaping energy conservation policies.
Oil price changes impact Libya's economic growth positively in the long term. The study used a test called ARDL to show that oil prices affect GDP movements. There is a two-way relationship between oil prices and GDP, while imports and trade openness have a one-way relationship with oil prices. However, oil price shocks do not significantly affect the trade balance. Libya should create energy conservation policies considering its unique situation.