Literature review on oil price volatility - Price literature

This paper takes as a reference point two strands of the literature— the macroeconomic effects of oil price shocks, and episode studies of the effects of. Section 2 will broadly review the previous literature.
Series data required for this study – daily oil prices and quarterly Indonesian macroeconomic indicators – are available and accurate. The purpose of our paper is to examine the relationship and interactions between oil price movements and stock market indexes in main two oil exporting countries - Russia and Norway from January 1998 to March, and test how and to what extent oil prices together with other variables influence stock markets.

Oil and the Nigerian Economy. This study attempts to capture the impact of oil price changes on Pakistan' s economy.

- IMF Keywords: Event study, fundamentals, oil exporters, oil price, transmission of shocks. A Crude Shock: Explaining the Impact of theOil Price.

[ 13] employs GARCH models to forecast conditional volatility of spot. This research paper is built on the theoretical framework of the neo- classical theory of economic development.
An Analysis of Oil Price Volatility Using VAR - Lahore School of. A Study on the Effect of Oil Price Variations on Stock.

Macroeconomic volatility and stagflation during the 1970s and 1980s have been largely attributed to oil supply. First, the literature indicates both positive and negative effects of oil price fluctuations on stock markets and this study attempts to reveal for policy. - Bank of Jamaica indicate that oil price shocks largely do not have a permanent effect on the Jamaican economy. Literature review on oil price volatility.

Firstly, we will present a brief historical overview of oil shocks. Not All Oil Price Shocks Are Alike - World Trade Organization One strand of the literature views oil as an asset, the price of which is determined by desired stocks.

Chapter 2 Literature Review - Shodhganga literature review are: • To study the overall oil price forecasting methodologies used by re- searchers. The first step is to examine the connection.
A Structural Analysis of Oil Price Shocks on the. GNP, it will affect the earnings of companies for which oil is a direct or indirect operational cost.

The Effect of Oil Price. The Treasury yield curve flattened.


Diverse theoretical relationship between oil price and exchange rates have been established in literature. - Editorial Express Section 2 reviews the literature.
Hamiltondemonstrates that. Therefore, the research question of this study is to analyze the impacts of oil price volatility on strategic investment decisions of oil companies on a regional level.
Macroeconomic Impacts Of Oil Price Levels And Volatility On. OIL PRICE VOLATILITY AND INVESTMENT.
The study further found a negative significant relationship between oil price volatility and. , Associate Professor of Economics and Finance.

Vast literature exists on the causal relationship between exchange. Impact of Oil Price Volatility on Industrial Sector Output EduCacInfo.

Russia, the surge in oil prices raised the. Price volatility.

LITERATURE REVIEW. - Science Direct Literature Review.
Volatility to study how oil price uncertainty adversely affects the macroeconomy. The empirical literature we review in the next.

| OMICS International Based on this literature review, we seek in this paper to; highlight the possible interactions between the physical factors, the traditional and modern financial factors ( speculation and kcfsi index) that can have an impact on the oil price volatility. If oil price affects real.

Oriakhi and Iyoha. The Impact of Oil Prices on Sectoral Equity Returns: Evidence from.

Furthermore, the. The remainder of the paper is organized as follows.

Master Thesis - University of Tilburg In general, the study finds oil price volatility has a negative effect on most of the emerging stock markets. Literature has revealed that oil price volatility does not only affect government revenue but also the output of the industrial sector.


Smart Farming is a development that emphasizes the use of information and communication technology in the cyber- physical farm management cycle. The Financial Risk of.

Does oil price volatility exert on stock market volatility in Nigeria? Concludes with some remarks about the longer- run effects of oil price volatility. This section reviews a number of issues in the literature that pertain to oil price volatility and its effects on the economy, with a special attention to the Nigerian case. It is concluded that oil as a resource, cannot be attributed to the poor economic performance of most oil rich countries, but perhaps might have come about by weak institutional base and oil price volatility which usually has an adverse effect on long) term economic.

An Analytical Study on the Impact of Fluctuating Oil Prices on OPEC. These oil barrels include West.

Dynamics of oil price shocks and stock market behavior in Pakistan. • To discuss the types of methods used in Time Series models frame- work for.

A description of. Multivariate Regression Analysis of Oil Price Volatility on GDP.


Essays on the Effects of Oil Price Shocks on Financial Markets and. Cial literature and are widely applied in forecasting of oil prices.
The Effect Of Oil price And Currency Volatility On The Stock - Unisa. During the period of high.

Oil price returns and its volatility has a major impact on the economic activity and hence on futures and spot stock market returns. The effect of oil price and currency volatility on the stock price of oil and gas companies in South Africa A Research Report Presented to the.

IEA Research Paper. Literature review.

The variables selected are based on the literature and. Oil price volatility and economic activity - Shimon Awerbuch Oil price VOLATILITY AND ECONOMIC ACTIVITY: A SURVEY and LITERATURE REVIEW.
2 Literature Review. The changes and volatility in the relationship between oil price and consumer inflation have attracted many.

The oil prices up and this price volatility lasted until October 1981 when OPEC officially set a benchmark. Section 3 presents the data and the methodology. ( ) found that there was a negative relationship between industrial production and oil prices. This role is investigated by, first, an in- depth discussion of factors influencing the price of oil.

Accordingly, the objectives of this study will be explored. A comprehensive, sortable list of ProShares Exchange Traded Fund product offerings ( ETFs).

The Impact of Volatility of Oil Price on the Economic Growth in Sub. Interestingly, however, both the linear ( OILP) and volatility adjusted ( SOPI) measures of oil price shocks appear to be integrated of order one as shown by the KPSS testing procedure. The empirical findings are analysed in Section 4. Section 5 provides detailed findings.

In this paper, we argue that the continuous diffusive oil price volatility predicts real economic activities better than. Definitions vary, but there are four or five long- established factors that seem to make shares perform differently from the rest of the market: size, value, yield, low volatility.

The oil industry is changing face with dramatic changes that occurred in the last decade, the increased demand by emerging markets and the maturity of cracking technology which resulted in the growth in oil supplies from shale oil with. Literature review on oil price volatility.

The reviewed literature shows that most of the previous studies considered oil price as the main source of oil. Section 4 provides a description of the methodology of asymmetric- based CGARCH, the SVAR framework and data used to model oil price volatility and its effects.

All the companies that helped with the data. - USAEE Following this introductory section, we focus on cross cutting review of the oil price- macroeconomy literature in section 2.

Moreover, the persistence of the literature leads us to the question of whether. Various research has be done examining the effect of oil price fluctuations on different economies driven by the importance of oil as a key.


The research will begin with the literature review of papers regarding oil price shocks, transmission. Impact of oil price volatility and macroeconomic variables on.
Of volatility of each commodity to an oil price shock differs significantly depending on. Oil Price volatility is a measure of the variation in the oil price over a given period of.
Price volatility. Transmissio n of volatility detected.

Oil import volatility and its effect on economic growth in. After brief review of literature review across different countries, developing and developed economies and from different region of the world, it is observed that the effect of oil price volatility and the macroeconomic variables are not previously viewed, anticipate and define its magnitude in the context of pakistan.

Oil price shocks and nigerian economic growth - European Scientific. In this article, an extensive review of the rapidly growing biofuel- related time- series literature is carried out. Background of the Study 1. - DergiPark Kumar ( ) and Tang et al.

2 Literature review. 19- 36, February Published by European Centre for Research Training and Development UK ( www.


Long) term effect of oil abundance on economic growth. About 20 million hectares ( 1% of worldwide agricultural land) were committed to grow biofuel feedstocks in ( Scarlat and.
Macroeconomic impacts of oil price volatility - Smith School of. Oil price changes and economic output.
Two years ago, was a year of thwarted adjustment for oil: strong growth in OPEC production outweighed the responses of both demand and non- OPEC production to. For national economies, the real risk of fossil price volatility is its negative impact on macroeconomic activity, through the Oil- GDP effect.

Equities saw strong inflows. The main objective of this study was to investigate if volatility of oil price had an effect on Kenya' s GDP growth rate with Exchange rate and Inflation rate as intervening variables. Chortareas and Noikokyris ( ) studied the effect of oil supply and demand. The rest of the article is as structured a follows: Section 2 provides the literature review;. Of oil price uncer- tainty on real economic activities are inconclusive, although the theoretical literature ( such. Therefore, there is need to review the existing literature on the volatility of oil price and economic growth in sub- Saharan Africa.

School of Economics and Management The impact of oil price on. Shimon Awerbuch, Ph.

How is Volatility in Commodity Markets Linked to Oil Price Shocks? This continuous increase and decrease in oil prices created an atmosphere of uncertainty in the macroeconomic environment.
Direct and indirect effects of oil price shocks on. Political headlines dominated last week and equity volatility steadied.
Ghana‟ s economic growth. The Effects of the Increasing Oil Price Returns and its Volatility on.


In addition, the general equilibrium approach of our analysis provides a co- herent framework to study simultaneously the different transmission mechanisms of oil price volatility shocks and. By finance literature.
1 Clarification of Concepts. Literature review on price volatility transmission.


Thus, adding to this literature, this study examines whether oil price shocks and oil price volatility can predict bullish stock market behaviour, using. The Effect of Oil Price Shocks on Economic Activity in Saudi Arabia.
The nexus of oil consumption, oil price volatility and economic growth. Tabala ( ) analyzed the effect of oil price shocks on Saudi and Russian' s economies.

This literature review is split into four parts. 3 gives an overview of Thailand' s energy consumption and sectoral development.
Impact of oil price shocks and exchange rate volatility on. Due to the fact that only few studies have been done on this topic in sub- Saharan African, we decided to extend our review to cover the studies done in other countries and regions.

The aim of this study is to extend the literature by investigating the effects of different oil- related shocks on the volatility of selected agricultural and metal commodities. Literature review on oil price volatility * * * online essays impacts of oil price levels, few conducted analysis on the effect of oil price volatility while Literature Review Oil price shocks and the US macroeconomy.

Oil Demand, Oil Prices, Economic Growth and the Resource Curse. This paper is concerned with the role of oil for the Kazakh economy.
According to this theory, which has its origin in classical. Discusses a review of the literature on oil price shocks and the macroeconomy.

These are the issues that this paper wants to address. The Literature Review discusses the macroeconomic impacts of oil price levels and price volatility on the US and other.

Many studies report that oil price have significance impact on determining the consumer price inflation as oil is the direct input for many consumer productions and it is used as the direct input in. The analysis is based on a structural VAR model, which relates oil price to its driving factors, namely oil supply shock, global demand shock.
The Volatility of Oil Prices: What Factors? The fact that volatility and oil price changes have a stronger and more significant impact on economic activity than.
Economic Growth Implications of Oil Price Fluctuations: The GCC. As Pakistan is a large importer of crude oil, oil price volatility tends to affect most sectors, from energy production and food and agriculture to manufacturing and transportation.
Rising trade risks do not shake the strong case for emerging market ( EM) equities. But recently a growing literature has focused on the consequences of oil price volatility.

In this interpretation. 2 Literature Review: Oil Price, their Volatility and Economic Impact. The Impact of Changes in Crude Oil Prices on Economic Growth in. Oil Prices and Exchange Rate Volatility - Central Bank of Nigeria volatility of oil prices and its effects on exchange rate volatility.

This study attempts to examine the extent to which oil price influences exchange rate volatility in. Impact of Oil Prices Fluctuations on Economies in the Age - Digital.


A Comparative Study on the Effects of Oil Price. International oil prices.

However, the current literature lacks a comprehensive review of the interactions between global macroeconomic performance and oil price volatility ( OPV). Economy vulnerable to several macroeconomic economic side effects.
Section 5 summaries and concludes the paper. Crude Oil Price: Crude oil prices measure the spot price of various barrels of oil quoted in the global oil market.


As we have already suggested, fossil price volatility presents a special type of systematic risk that cannot be diversified. Having a sufficient understanding of these factors is crucial for the assessment of the volatility the oil price features.
Oil price shocks and economic growth in nigeria: are. State, Nigeria and found that international oil price shocks affected the State' s economy inversely, while a positive.

- ULYSSES Project The literature on energy- agricultural markets price volatility linkages are also reviewed given the increasing linkage of these two markets in the past decade and also. Oil Price and Exchange Rate Volatility in Nigeria - IOSR journals study examined the effects of oil price, external reserves and interest rate on exchange rate volatility in Nigeria.


Literature Review. Prior to the discovery of crude oil in commercial quantity in 1956.
India’ s reform- driven, self- sustaining growth is a case in point. The Bank continues to broaden its research and analysis of structural and sectoral issues, while establishing research partnerships with outside institutions and individuals.
OIL PRICE VOLATILITY AND ECONOMIC ACTIVITY:. The Impact of Oil Price Shocks on the Economic.

The Impact of Oil Price Shocks on Macroeconomic Performance Bernanke, Gertler and Watson ( ) point to a projection of the Energy information Administration' s ( EIA) that predicts that by, the volatility of crude oil prices. - CiteSeerX determine the long- run and short- run causes of oil import volatility, and to study the effects of the volatility on.

Haltiwanger, ; Finn, ). 2 How is volatility in commodity markets linked to oil price shocks?

1 The Link between Economic Activity and Oil Prices. Study, oil price volatility and the rand dollar exchange were studied.

Oil Price Uncertainty and Real Economic Activities - American. Global Journal of Arts Humanities and Social Sciences Vol.

The effect of oil price on oil importing countries and oil. Literature review on oil price volatility.
( 19 agricultural commodities and oil prices). Price changes and its volatility have negative effects on economic growth, though in different ways ( Lee, 1998 in.

Section 3 will explain the methodology and data. THE IMPACTS OF OIL PRICE VOLATILITY ON STRATEGIC.
The outbreak of the Iran- Iraq War in late 1980 ( for a review see, e. Introduction and Literature Review 1.

Oil price volatility and manufacturing in kenya - Strathmore University Oil prices being a key component affecting future expected cash flow and the impact of Oil prices is therefore inevitable. Unisa Graduate School of business leadership library staff for your guidance in doing literature search.

The relationship between oil price shocks and stock market returns is studied broadly in the literature. Price volatility, as illustrated in the upper- left panel of Figure 1.

This chapter reviews relevant literature on oil price volatility, oil consumption and economic growth. The remaining chapters comprise the literature review, whereby, the theory of investment under uncertainty and its link to the relationship between oil price.

James Hamilton published a path- breaking paper that. The methodology adopted for the empirical study is discussed in Section 3.
Thus, an increase in oil. Nigeria industrial sector has been impacted significantly by the wage of oil price volatility.

Biofuel- related price transmission literature: A review Price levels. The influence of oil price volatility.

Oil price shocks and volatility do predict stock market regimes Even though the oil literature is still growing, past findings do not provide evidence about whether oil prices can predict the probability of a stock market being bullish or bearish. Estimating the effects of oil price shocks on the Kazakh economy provides an excellent survey of this literature.

Abstract— The present study is undertaken to analyze the impact of changing oil prices on macroeconomic factors of. Negative oil price shock increased the volatility of oil price significantly, while positive oil price shock did not have any significant impact on oil price volatility.
Direction of detected volatility transmission. The aim of this study is to investigate the effect of the oil price and its volatility on the stock market of Pakistan before and after the financial crisis period.

Oil import volatility has a negative and significant effect on GDP growth in both the short- run and the. The effects of oil supply and demand shocks on the baltic.

Secondly, the existing literature on the relationship between oil price changes/ volatility and economic activity will be examined. A group of studies applying econometric. Numerous studies have addressed the effect of price volatility on specific economic parameters. Early studies focus on the oil price‟ s impact on real economy fluctuations.

The study used quarterly data from KNBS, CBK. Time- Varying Oil Price Volatility and Macroeconomic Aggregates.

( Adedipe, ; Odularu, ),. Then the authors will discuss the main transmission.

- ResearchGate Key words: direct and indirect effects, oil price shock, VAR model, impulse responses, economic growth, trade. In their empirical study, ( Huang, Masulis, & Stoll, ) opine that if oil plays an important role in an economy, one would expect changes in Oil price.
Research is central to the monetary policy framework. 1 Background of Study.

, Chair and Associate Professor of Economics and Finance. Done in two ways: i) by creating an oil volatility series and ii) by determining whether uncertainty in oil prices, as measured by their volatility, can help explain equity returns' volatility at the industry level.
And also, to reduce Ghana‟ s vulnerability to oil price volatility, policy makers must. This empirical study puts that. Effects of Oil and Natural Gas Prices on Industrial. How volatile is the Nigeria stock market?

- PoPuPS economy, the effectiveness of the policies hindering the negative effects of oil price volatility.

LITERATURE-REVIEW-ON-OIL-PRICE-VOLATILITY