Notice of RetractionCan energy price shocks drive long-run technological progress and growth?—Empirical evidence from Korea

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

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This study develops a model including real GDP per capita, real prices and quantity of crude oil and petrolem products imports, and Won/Dollar real rate of exchange. Johansen cointegration test on annual series of 1970-2008 indicates a relationship of cointegration. Further Granger non-causality tests show that real prices of crude oil imports have adverse shor-run but positive long-run effects on Korean economy, and the quantity of crude oil imports has a significantly positive long-run effect. However, both real prices and quantity of petroleum products imports exhibit literally opposite effects. This paper documents empirical evidences for the hypothesis that energy shocks may facilitate long-run endogenous growth of a resource scarce economy.