TY  - JOUR
AB  - This article presents a general equilibrium model capable of
assessing the impact of foreign price shocks on the real side of the
oil‐based developing economies. The theoretical model departs from
previous work in this area at least in that (1) the model takes into
account endogenous income and price responses in all sectors of the
economy; (2) it has two traded goods (exports and imports) and a
non‐traded good; (3) it explicitly addresses the inherent open and small
economic nature of developing countries; and (4) besides adjustments in
the endogenous domestic prices, the model also allows for other
structural adjustments. As such, the model combines the neoclassical
macro theory with the structural micro approach. Empirical evidence
deduced from an important oil‐based developing economy (Saudi Arabia)
appears quite consistent with the model theoretical implications.
VL  - 17
IS  - 6
SN  - 0144-3585
DO  - 10.1108/EUM0000000000148
UR  - https://doi.org/10.1108/EUM0000000000148
AU  - Darrat Ali F.
AU  - Osman Suliman M.
PY  - 1990
Y1  - 1990/01/01
TI  - Impact of External Price Shocks on the Oil‐based Developing Economies
T2  - Journal of Economic Studies
PB  - MCB UP Ltd
Y2  - 2024/04/23
ER  -