University of Tehran Iranian Economic Review 1026-6542 27 1 2023 05 01 Moderation Role of Energy Prices on Financial Instability, Trade Openness, and Economic Growth in Non-OPEC Countries 267 282 92458 10.22059/ier.2023.92458 EN Umar Muhammad Dabachi Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, 23100 Kuala Terengganu, Malaysia. Suraya Mahmood Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, 23100 Kuala Terengganu, Malaysia. Ali Umar Ahmad Faculty of Maritime Study, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia. Aminu Hassan Jakada Department of Economics and Development Studies, Faculty of Arts and Social Sciences, Federal University Dutse, Dutse, Nigeria. Ahmad Tijjani Abdullahi Department of Economics, Faculty of Social and Management Sciences, Bayero University Kano, Gwarzo Road Kano, Nigeria. Mohammed Atiku Abubakar Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, 23100 Kuala Terengganu, Malaysia Kabiru Kamalu Faculty of Business and Management, Universiti Sultan Zainal Abidin Malaysia, 23100 Kuala Terengganu, Malaysia Journal Article 2023 05 31 This paper examined the interaction effect of energy prices on the relationship between financial instability, trade openness, and non-OPEC countries' economic growth. The paper used panel time series data from 1970-2018. In addition, the paper applied a second-generation approach. The results of the cointegration test revealed a long-run relationship among the variables. Moreover, the results showed that financial instability, energy price, and the 2014 energy crisis have a negative effect on economic growth, while, trade openness has a positive effect on economic growth. Additionally, the results confirmed that the interaction term of energy prices and financial instability is negatively affecting economic growth, but the interaction term of energy prices and trade openness is positively affecting the economic growth of non-OPEC countries (emerging ASEAN economies). However, the results of the causality test indicated a one-way causal relationship between financial instability to economic growth, energy price to economic growth, and trade openness to economic growth. The empirical findings also suggested that interventions from the policymakers of the emerging ASEAN country could provide rigidity or policies on financial repression, instead of a more flexible financial system, designed to expand growth and stability in focused macroeconomic policies through financial rules. To control energy use and stabilize prices in ASEAN countries, there should be a comprehensive energy policy, which may have a negative impact on their economies, as most of the emerging ASEAN countries have not relied on oil revenues. https://ier.ut.ac.ir/article_92458_b574dd368d3d18e35f28006a5e0dbcfe.pdf