This study applied recently developed Panel Structural Vector Autoregressives (P-SVAR)
estimating technique to empirically assess the transmission processes of oil price shocks and how it
impacts economic performance within the monetary framework of the Africa’s net oil exporting
economies. The study considered, among other variables; inflation, money supply, bank rate,
exchange rate, gross domestic product, unemployment and oil price shocks which is treated as
exogenous while other variables as endogenous variables. The period of the study covered 1980-
2015. The analysis of the data revealed that there were significant responses to oil price shocks during
this period. The result of the study showed that oil price shocks have large impact on the economic
performance of Africa’s oil exporting countries and also that transmission of oil price ensues
monetary medium. Hence, the study suggests that strong monetary control measure should be put in
place whenever positive shocks in oil is experienced.
Keywords: Oil Price Shocks; Economic Performance; Panel SVAR, Oil Exporting.