Economic effects of energy price shocks in emerging markets: policy implications and resilience strategies
DOI:
https://doi.org/10.51247/st.v9iS2.785Keywords:
energy price shocks, emerging markets, inflation, resilience strategies, economic policy.Abstract
This study analyzed the economic effects of energy price shocks in emerging markets, emphasizing policy implications and resilience strategies. The objective was to evaluate how fluctuations in global energy prices affected inflation, economic growth, fiscal balances, and trade performance in energy-importing and energy-exporting economies. A mixed-methods approach was adopted, combining doctrinal economic analysis with empirical panel-data modeling for 30 emerging economies during the period 2010–2023. Dynamic panel estimations and comparative case studies were used to identify short-term and long-term impacts, as well as the effectiveness of mitigation policies. The findings showed that energy-importing countries experienced stronger inflationary pressures, deteriorating trade balances, and lower purchasing power during price surges, while exporting economies benefited temporarily from higher revenues but remained vulnerable to fiscal instability during price collapses. The results also revealed that targeted subsidies, strategic reserves, hedging mechanisms, renewable energy investment, and structural diversification significantly improved resilience. It was concluded that conventional fiscal and monetary responses were insufficient when applied in isolation, and that long-term stability depended on stronger institutions, diversified energy systems, and adaptive governance frameworks. These findings provide practical guidance for policymakers seeking sustainable growth under persistent global energy volatility.
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