This article examines the real convergence hypothesis in OPEC countries (Algeria, Angola, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela) using time series techniques and allowing for structural breaks. The main results show lack of support for income convergence in OPEC countries. We only find evidence of catch-up with the...

The goal of the article is to analyze role Saudi Arabia in world oil market and economy for a long historical period. It shown that strategically behavior always was continues be subordinated ensuring stable supply into market. Under leadership OPEC aims at pursuing an economically rational responsible policy, supporting balance demand its thus allow¬ing avoid deep lasting price decline. Until ...

In this article, we unearth the institution for enforcement of the agreement between the Opec Boys, fuel smugglers and ex-rebels, and a politician, who allows them to conduct illegal smuggling. Rather than the Opec Boys’ threat of rebellion, their promise of political support and refraining from civil disorder matters to inflict cooperation. A repeated play mechanism where the players punish ea...

Article history: Received 21 April 2008 Received in revised form 13 May 2009 Accepted 14 May 2009 Available online 27 May 2009 This paper assumes that the decision makers of OPEC (or at least of its core members) are interested in both profits and political payoffs (support, popularity, being a hero of the Arab or Islamic street, etc.). The oil weapon, i.e. a reduction of output is the most pow...

While there is good reason to expect crude oil production to be non-linear, previous studies that have examined the stochastic properties of crude oil production have assumed that crude oil production follows a linear process. If crude oil production is a non-linear process, conventional unit root tests, which assume linear and systematic adjustment, could interpret departure from linearity as ...