Sustaining Lifestyle and Living Standards Amidst Lower Oil Prices - Thesis Proposal Example

The paper "Sustaining Lifestyle and Living Standards Amidst Lower Oil Prices" is a perfect example of a thesis proposal on finance and accounting. The oil and gas industry has recently attracted much attention within the global context owing to its effectiveness in yielding greater profitability for economies, which in turn is often related to economic sustenance, stability, and per capita growth of the nations. Studies have been conducted in this regard to illustrate and elaborate on the direct as well as indirect influences caused by oil price fluctuations on economic models.

As most studies conducted with concern to the stated phenomenon reveal, the high price of oil is likely to result in deteriorating national health for economies dependent on imported oil and gas, while for the producers it acts as a boon (Abeysinghe, 147-148). Often attributed as a recession-proof commodity, economies have shown tendencies to gain advantages by gaining a higher bargaining power in the oil industry. It is thus noteworthy that the oil and gas industry has since long been credited owing to their economic value as a contributor to national health.

Correspondingly, it has been related to economic performances in terms of Gross Domestic Product (GDP), inflation, investment trend in the domestic market, budgetary trends, and many others. Effects of oil and gas price fluctuation have also been related to social developmental trends in nations, which include living standards as well. For instance, like Sharpe, Arsenault, Murray, and Qiao argue, “The future development of the oil sands carries significant challenges, be they political, environmental or social” (10).

Accordingly, Abosedra and Baghestani asserted that “crude oil price deteriorations, like the one in 1998, create serious budgetary problems for oil-exporting countries” (1389). A similar point of view was also obtained from Acemoglu, Finkelstein, and Notowidigdo, arguing that “any increase in population in high oil areas relative to low oil areas may increase health expenditures directly, potentially overstating the effect of increased income on hospital spending among a (constant) population” (1088).

These studies apparently denote the degree of influence caused by oil price fluctuations on the living standards of an economy, although limited is observed with regard to the notion at the quantitative extent. Identifying this literature gap, the study intends to examine the correlation between oil price fluctuations and living standards within economies.