Oil Dependence and Economic Activity
Setting the stage
Let's quickly look at where this oil decline has left the state
What about Alaska's important economic base?
Why have some states recovered?
Aggregate relationship between oil prices and employment
Where does this leave us?
⚫ Stickiness of oil shocks varies from state to state. For
example, Wyoming and North Dakota are more sensitive to
negative shocks than they are to positive ones.
⚫ The oil dependence, as measured by the share of GDP
coming from Oil and Gas and Mining varies greatly across
these 13 states. Alaska, Wyoming, Oklahoma, and North
Dakota are the four states most dependent on the oil
sector. In 2014, they had 28.63%, 26.9%, 19.62%, and
18.35% of the value produced coming from the sector.
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Mouhcine Guettabi, PhD
Oil dependence and economic activityView entire presentation