In the current times, energy is the most crucial factor to the areas all over the globe. As is known to all, oil price has jumped tremendously during the recent decade, which has important effects on both economic activity and macroeconomic policy. In particular, the huge growth of oil price is causing concern about possible slowdowns in the economic performance of the most developed countries. In fact, during the economic crisis two years ago, the negative correlation between the oil price and the macroeconomic variables took on obviously, which appeals to concerns on this relation.
II Data Description
As we all know, the government policies in the economic or financial field have a significant effect on the change of product. In this project, I would like to do research on which factors have significant effects on the fluctuation of GDP in developed countries and whether there is effect of surge of global crude oil price on each observation’s Gross Domestic Product. Besides GDP and oil price, All the other variables I choose are about either macroeconomic level related to government policies, such as interest rate, consumer price index exchange rate, government debt and unemployment rate, or the variables related to the financial market and educational background, such as reserve assets, share prices and participation of citizens in higher education, which are crucial standards to evaluate the comprehensive performance of each country in the domestic economy. What I wonder to focus on is which factors have important effect on the GDP of these countries and the effect of change of other coefficients when adding the variable of oil price.
In this paper, I focus on 35 OECD (The Organization for Economic Co-operation and Development) countries in the world, since in these countries, the constitution and implement of the policy are more accurate and thorough, which is very crucial...