Louisiana Economy from 1980 to 2019: Oil and Natural Gas Prices
Creators
- 1. College of Business, McNeese State University, USA
Description
Abstract: This paper studies the effects of crude oil and natural gas price fluctuations on the economic growth of Louisiana. Simple correlation, multiple regression in natural logarithms, and extreme value theory (EVT) are applied. Annual data from 1980 through 2019 are used. The evidence shows that crude oil and natural gas prices exert major influences on Louisiana’s economic growth over the sample period. Increases in these prices benefit the Louisiana economy, while decrease harm it. Due to their unpredictable future price declines, and cheaper and cleaner renewable energy sources arising from surging environmental concerns, the Louisiana economy would benefit from economic diversification.
Keywords: GSP, Crude Oil, Natural Gas, Diversification
JEL Classification Number: O10, O11