THE IMPACT OF THE ECONOMIC GROWTH OF CHINA AND INDIA ON OIL PRICES

Abstract

In last two decades, the economies of China and India have grown at a very high rate, which exposed them to the need for more energy, including oil. The increase in the demand of oil for these countries is expected to impact the oil prices. This study uses 10-year, quarterly data to investigate whether the economic growth in China and India has affected oil price. To analyze the data, ordinary least square method was applied. The test results of the model revealed that only economic growth in China has had an impact on the oil prices, and not India. The findings of this study are similar to those of some previous studies.