Oil price shocks impact economy of oil-exporting countries, warns new study.
The article explores how oil-exporting countries react to changes in oil prices. By analyzing different factors like the cause of the price changes and the state of the economy, the researchers found that the impact of oil price shocks varies depending on these factors. They used a method called Threshold Structural VAR to study these relationships. The study suggests that decision-makers need to consider both the reasons behind oil price fluctuations and the economic conditions when making decisions based on oil prices.