Effects of oil production on economic growth in Eurasian countries: Panel ARDL approach

This study aims at analyzing the relationship between oil production and economic growth in major oil exporting Eurasian countries; Azerbaijan, Kazakhstan, Russian Federation and Turkmenistan for 1993–2010 periods. Empirical results reveal that oil production and economic growth are cointegrated for these countries. Furthermore, there is positive bi-directional causality between oil production and economic growth both in the long run and in the short run which supports the policies about investing in energy infrastructure.

► Causality between economic growth and oil production is important for energy policies.
► Oil production and GDP are cointegrated for four oil exporting Eurasian countries.
► There is positive bi-directional causality between oil production and economic growth for these countries.