Oil Price Effects on the Kuwaiti Economy
Literature Review
The literature review will focus on identifying the effects of oil prices on the macro-economy in general. Accordingly, the review will result in the particular aspects to be focused on in terms of the macroeconomic variables of oil price fluctuations. (Points 1 and 2 are already done and included for clarity only). Please start from point 3 onwards.
1. The review will conduct research on the effects of oil price fluctuation on countries in general and oil-producing countries in particular. The research will touch on the Kuwaiti economy as well. (Completed earlier)
2. The review will survey research papers on oil prices and macroeconomic performance (Completed earlier)
3. The review will survey research papers on oil price prediction
4. The VAR model will be researched but will be mainly left for the methodology chapter.
5. The review may also briefly discuss papers on derivatives as a hedging technique (see the link for a definition of derivatives as a hedging technique: https://eagletraders.com/books/afm/afm10.php)
6. The review will highlight the gap in the literature regarding the oil price fluctuation, which will be the research’s contribution.