Abstract
Studying microeconomics is as important as studying its larger counterpart, macroeconomics. Macroeconomics basically deals with the overall aspects of an economy rather than on the smaller details. This paper focuses on the discussion of the Macroeconomic effects of world crude oil price changes, an academic journal authored by Dr. Ercan Ekmekcioglu from Turkey University. In this case, the general effects, which can either be positive or negative, of oil price changes in state economies will be reviewed based on a journal that was published by the International Journal of Business and Social Science. The objective of this paper was to provide a comprehensive but sufficient description of what the journal or study is all about present its main points and conclusions, and evaluate it in terms of its significance, usability, and readability, and basically how the gathering of data in the journal was carried out. At the end of the study, it was found out that crude oil price changes in the world market could significantly influence a nation’s economic output, standards of living, and even an entire industry that relies on crude oil and oil related products.
Summary
Basically, the article tries to focus on the problem or at least, potential problems that may accompany world crude oil price changes. There are two parts of this paper; one that dwells on the positive effects of changes in oil prices and one that dwells on the negative ones. The importance of crude oil, as one of the most in-demand commodities in the planet, at least in this era of civilization, has been established early on in the paper. This reason alone makes this and other studies that are related to the changes, sharp changes at that, in oil prices relevant and important. Crude oil can be an asset, and at the same time, it can also be a price that a country has to pay, if it wants to support substantial economic growth and development.
The academic journal exhibits the features of a systematic review, since it is basically a complication of studies that are related to the research question. In this type of research, the author extracts academic journals from credible sources and synthesizes their conclusions and present it to the readers in a systematical review way. On the other hand, the paper appears to be a simple review of literatures because one, it is too short to be a systematic review, and two, because it uses relatively few sources.
The amount of crude oil that a country has is generally perceived as an asset. These countries are usually the ones that are located near gulfs and shorelines. They are usually the ones who have access to oil the oil that the world market accesses today. Whenever there is a sharp increase in oil prices in the world market, these countries receive the heftiest of benefits, considering that all countries currently rely on oil and its by-products. Developing countries that do not have access to the required technology to exploit their own oil and countries that do not have access to this precious resource are often the ones who suffer. In a way, they have no choice but to adhere to the inflated oil prices because should they opt not to, their respective economies would surely suffer. The availability of crude oil in a state is generally directly proportional to the economic output, which makes it a significant factor for economic growth.
Changes in oil prices have also led to the creation of new industries—industries that aim to promote products that could be a future mainstream alternative to the non-renewable oil. This may be a good decision but its effects as of the moment would not be felt or realized, considering how the oil industry has monopolized the world economy.
Evaluation of the Article
The journal article successfully presents the good and the bad side of world crude oil price changes. No biased statements have been mentioned since the side of countries with and without access to oil has been thoroughly discussed. This type of journal articles could really be of great significance today, considering the volatility of crude oil and its by-products and how it can significantly affect the growth or the regression of an economy.
Works Cited
Barsky, R. and L. Kilian. "Oil and the Macro-economy Since the 1970s." Journal of Economic Perspectives (2004).
Ekmekcioglu, E. "The Macroeconomic Effects of World Crude Oil Price Changes." International Journal of Business and Social Science (2012).
Riley, G. and E. College. "Open Economies and Macroeconomics Shocks." Journal of International Economics (2006).
Siamack, S. "The New Global Oil Market: Understanding energy issues in the World Economy." Praeger Publishers (1995).
