Interaction Effect of Shocks on Supply of Upstream, Intermediate and Downstream Oil and Gas Industries in the Iranian Economy

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Economics, Imam Sadiq University, Tehran, Iran

2 Assistant Professor, Faculty of Economics, Kharazmi University, Tehran, Iran

3 PhD. Student of Oil & Gas Economics, Economics Faculty, Imam Sadiq University, Tehran, Iran

Abstract

The aim of this paper is modeling the effectiveness and interaction effect of shocks on the supply of upstream, intermediate and downstream Oil and Gas Industries in the Iranian Economy, so 10% supply shocks were modeled based on partial hypothetical extraction. That way, the 6 sectors of oil and gas were measured. The main results of this study showed that the largest reduction of value-added (26%) was due to supply shock in petrochemicals. Also, the largest reduction of Iran's oil and gas industry has been observed due to the 10% supply shock in the sectors of "Extraction of crude petroleum and natural gas", "Manufacture of gas; distribution of gaseous fuels through mains" and "Transport via pipeline". Respectively, down by 9.56 percent, 6.84 percent, and 5.79 percent.

Keywords

Economic Strategy
Volume 7, Issue 26
October 2018

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