International Commodity Import Price Index and Regional Economic Development: Panel Data Analysis for G7 Countries

The relationship between commodity prices and economic growth is being investigated with increasing interest in economic literature. Various international price indices related to this topic are calculated and published. With the rise of large volumes in global trade, the impact of commodity prices on national economies is also increasing. This study examines the relationship between commodity import prices and economic development for G7 countries. The analysis covers the period between 1962 and 2024. Cross-sectional dependence, homogeneity, unit root, and cointegration tests were used. The AMG approach was preferred as the estimation model. According to the results of the study, commodity import prices do not affect economic growth in the US, UK, and Canada, while they negatively affect it in Japan, Italy, Germany, and France. In addition, common commodity price shocks experienced on a global scale have a strong impact on the development dynamics of G7 economies.