A comparative analysis of the impact of oil prices on oil-rich emerging economies in the Pacific Rim

This paper examines the relationship between raw materials prices and economic growth through two channels, the terms of trade (TOT) and energy efficiency (EF), in three emerging Pacific Rim economies, Russia, Indonesia and Malaysia. We demonstrate positive relationships between changes in output and oil prices and between changes in GDP and energy efficiency (EF). We examine the impact of oil prices on output growth through the ToT and EF channels. The effect of oil prices on ToT in Russia and Malaysia is positive but negative in Indonesia. Oil prices have a positive effect on EF in all three countries. (C) 2014 Association for Comparative Economic Studies Published by Elsevier Inc. All rights reserved.