The impact of oil price volatility on the economic development: The linear programming method study

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In this study, the utilization of the linear programming method for the purpose of optimizing the impact of oil price volatility on economic development has been conducted accordingly. It utilised linear programming to ascertain how changes in oil prices have impacted the economy. Using the data gathered, the linear programming method has been demonstrated. Quality benchmarks for a number of characteristics have been calculated using the optimization of linear programming (Jarrett et al., 2019; Mo et al., 2019). The results of the linear programming, an examination of convergence was conducted. The four most important parameters have had growth regressions computed for the period 2010–2020 that factor in monetary development. These regression analyses have already been completed. Further, the well-developed static model exhibits linear effects within a finance-growth foundation. The findings have optimized CALP and financial growth accordingly. The proposed model was tested by running a cost-benefit analysis on a subset of the crude oil’s qualitative characteristics. The model presented in this article considers not only consumer satisfaction with product prices but also producer satisfaction with those same prices.

Keywords: Trade Openness, Linear Programming, Fluctuation Prices, Optimization Process, Economics Analysis

Authors’ individual contribution: Conceptualization — A.W.A.; Methodology — K.R.A. and A.M.J.A.; Formal Analysis — A.W.A., K.R.A., and A.M.J.A.; Investigation — A.W.A., K.R.A., and A.M.J.A.; Writing — Original Draft — A.M.J.A.; Writing — Review & Editing — A.W.A., K.R.A., and A.M.J.A.; Project Administration — K.R.A. and A.M.J.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D7, A1, G1

Received: 15.01.2023
Accepted: 11.12.2023
Published online: 13.12.2023

How to cite this paper: Alrawi, A. W., Awad, K. R., & Alakidi, A. M. J. (2023). The impact of oil price volatility on the economic development: The linear programming method study [Special issue]. Journal of Governance & Regulation, 12(4), 361–368. https://doi.org/10.22495/jgrv12i4siart16