Economic Growth, Oil Consumption and Import Intensity: Factor Decomposition of Imported Crude Oil Model Approach

Authors

  • Cheng-Yih Hong Department of Finance, Chaoyang University of Technology, Taichung, Taiwan
  • Chen-Jung Hsu

Abstract

Taiwan became a member of the WTO in 2002. Trade is the engine of growth in Taiwan, accounting for nearly 96.41% of GDP in 2016. Taiwan's economy is highly export-oriented. On the other hand, Taiwan depends on imports for near 98 percent of its energy consumption. This paper analyzes the changes in the intensity of crude oil imports between 1981 and 2016. This research sets several main topics: i) Estimating the imported crude oil intensity of final demand for a quantity analysis. ii) Measure of imported crude oil intensity of final demand. iii) Factor decomposition model for the imported crude oil intensity of final demand. iv) The study could provide an understanding of the properties and production technologies of various industries. The result shows that imported goods intensity is the largest in the crude oil and gas sector. Changes in imported crude oil intensity factors mainly from domestic production structure and final demand structure.

Keywords: Economic growth, Imported Crude Oil intensity, Factor Decomposition

JEL Classifications: C51, F14, Q43

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Author Biography

Cheng-Yih Hong, Department of Finance, Chaoyang University of Technology, Taichung, Taiwan

Cheng-Yih Hong is an associate professor in the Department of Finance at Chaoyang University of Technology in Taiwan, R.O.C. He received his Ph.D. degree in agriculture and resource economics from the University of Tokyo, Japan, in 1995. His research areas include industry correlation analysis, service management, tourism management, monetary finance theory, agricultural economics, and East Asian regional economics.

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Published

2018-07-16

How to Cite

Hong, C.-Y., & Hsu, C.-J. (2018). Economic Growth, Oil Consumption and Import Intensity: Factor Decomposition of Imported Crude Oil Model Approach. International Journal of Energy Economics and Policy, 8(4), 152–156. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/6355

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