Co-Integration Relation For Oil Production in Alternative Hypotheses About Opec Behavior

This study estimates three hypotheses of opec behavior:market-sharing, target revenue and competitive model for theperiod 1980 to 2000 for all opec courtiers except iraq. toexamine co-integration relation for oil production, we use adftest in ols estimation. also we use ardl approach toexamine these hypotheses and the long run relationship ofthem. results indicate none of three hypotheses fit completelywith opec behavior; market sharing model is consistent withmost of opec countries, but not for all; saudi arabia isconsistent with market sharing and price maker. some ofestimations of target revenue and competitive models arespurious, but among countries, which have statisticallysignificant estimations, none of them is consistent withcompetitive model. all estimations of target revenue modelwith ols to all opec countries are spurious except one(behavior of iran is consistent with partial target revenue) andalso the long run relationship of all estimations of targetrevenue model with ardl to all opec countries aremeaningless except one (behavior of qatar isn't consistent withtarget revenue model).