JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Oil Price Volatility & Macroeconomic Fluctuations: Recent Evidence from Mexico
Author(s): Yvonne Chen, Gökçe Palak
Citation: Yvonne Chen, Gökçe Palak, (2018) "Oil Price Volatility & Macroeconomic Fluctuations: Recent Evidence from Mexico," Journal of Applied Business and Economics, Vol. 20, Iss.3, pp. 93-101
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This research intends to identify the relationships between growth and key macroeconomic variables in
Mexico, with a primary focus on the fluctuations in crude oil prices. Using a multiple linear regression
model, the paper examines the impact of variables such as the export value, crude oil price volatility,
current account balance, and industrial performance on the real GDP growth, in addition to crude oil
price growth. In contrast to the mixed results reported in the literature, this study identifies a positive
correlation between the growth rate of crude oil price and Mexico’s GDP. The paper concludes with a
discussion on the ongoing petroleum regime reform that may shape the future of Mexico.