scholarly journals Asymmetries in the Relationship between Economic Activity and Oil Prices in the Selected EU Countries

2016 ◽  
Vol 16 (1) ◽  
pp. 65
Author(s):  
Andrzej Geise ◽  
Mariola Piłatowska
Keyword(s):  
Economic Activity ◽  
Oil Prices ◽  
Eu Countries ◽  
The Relationship

Oil Prices and Economic Growth in Major Emerging Economies

2020 ◽  
pp. 1-23
Author(s):  
Emrah I Cevik ◽  
Sel Dibooglu ◽  
Tugba Kantarci ◽  
Hande Caliskan
Keyword(s):  
Crude Oil ◽  
Emerging Economies ◽  
Economic Activity ◽  
Oil Prices ◽  
Energy Prices ◽  
Empirical Results ◽  
Crude Oil Prices ◽  
Causality Tests ◽  
The Difference ◽  
The Relationship

There is a strong correlation between energy prices and economic activity. The relationship particularly holds true for crude oil as changes in oil prices are associated with changes in production costs, and economic activity also generates significant demand for energy and crude oil. This chapter examines the relationship between economic activity and crude oil prices using causality tests in the frequency domain and taking into account the difference between positive and negative changes in both oil prices and economic activity as the relationship can be asymmetric. The authors present empirical results for major emerging economies including Brazil, Russia, India, China, South Africa, and Turkey. Empirical results indicate that for most countries there is bidirectional causality between crude oil prices and economic activity whereas only negative oil price shocks seem to negatively affect economic activity.

scholarly journals The Determinants of Risk Transmission between Oil and Agricultural Prices: An IPVAR Approach

Agriculture ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 120 ◽  
Author(s):  
Tan Ngoc Vu ◽  
Chi Minh Ho ◽  
Thang Cong Nguyen ◽  
Duc Hong Vo
Keyword(s):  
Exchange Rates ◽  
Economic Activity ◽  
Empirical Studies ◽  
Oil Prices ◽  
Policy Implications ◽  
Biofuel Production ◽  
Economic Activities ◽  
Vector Autoregressive ◽  
Agricultural Prices ◽  
The Relationship

Previous empirical studies have generally considered biofuel as a main factor in changes in the relationship between oil and agricultural prices because these changes happened after U.S. biofuel policies were implemented. However, it has been argued that other economic factors can trigger the correlation of these two markets. This study was conducted to examine the transmission mechanisms that influence the relationship between oil and agricultural prices. This paper used the interacted panel vector autoregressive framework, which allowed us to investigate the effect of biofuel production under different regimes of exchange rates and global economic activities. The responses of agricultural prices to oil prices at different levels of biofuel production, global economic activity, and exchange rates were examined in this paper. Data on prices for 10 agricultural commodities—barley, beans, corn, cotton, oats, rice, sorghum, soybean, sunflower, and wheat—from January 2000 to May 2019, were used in this study. Our findings indicate that oil prices can affect agricultural prices through biofuel and exchange rates. Moreover, the effect of biofuel depends on the level of global economic activity and exchange rates. We offer some policy implications on the basis of our findings in this study.

scholarly journals Has COVID-19 changed the stock return-oil price predictability pattern?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Fan Zhang ◽  
Paresh Kumar Narayan ◽  
Neluka Devpura
Keyword(s):  
Financial Markets ◽  
Stock Returns ◽  
Empirical Model ◽  
Economic Activity ◽  
Stock Return ◽  
Oil Prices ◽  
Trading Strategies ◽  
Oil Price ◽  
Seasonal Effects ◽  
The Relationship

AbstractIn this paper, we examine if COVID-19 has impacted the relationship between oil prices and stock returns predictions using daily Japanese stock market data from 01/04/2020 to 03/17/2021. We make a novel contribution to the literature by testing whether the COVID-19 pandemic has changed this predictability relationship. Employing an empirical model that controls for seasonal effects, return-related control variables, heteroskedasticity, persistency, and endogeneity, we demonstrate that the influence of oil prices on stock returns declined by around 89.5% due to COVID-19. This implies that when COVID-19 reduced economic activity and destabilized financial markets, the influence of oil prices on stock returns declined. This finding could have implications for trading strategies that rely on oil prices.

scholarly journals INTRODUCTION TO OIL PRICE SHOCKS

2011 ◽  
Vol 15 (S3) ◽  
pp. 327-336 ◽  
Author(s):  
Apostolos Serletis ◽  
John Elder
Keyword(s):  
Economic Activity ◽  
Oil Prices ◽  
The United States ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Price Shocks ◽  
Price Increases ◽  
Predictive Content ◽  
The Relationship ◽  
True Relationship

The relationship between the price of oil and the level of economic activity is a fundamental empirical issue in macroeconomics. Hamilton (1983) showed that oil prices had significant predictive content for real economic activity in the United States prior to 1972, whereas Hooker (1996) argued that the estimated linear relations between oil prices and economic activity appear much weaker after 1973. In the debate that followed, several authors suggested that the apparent weakening of the relationship between oil prices and economic activity is illusory, arguing that the true relationship between oil prices and real economic activity is asymmetric, with the correlation between oil price decreases and output significantly different from the correlation between oil price increases and output—see, for example, Mork (1989) and Hamilton (2003).

150 YEARS OF THE OIL PRICE–MACROECONOMY RELATIONSHIP

2017 ◽  
Vol 23 (3) ◽  
pp. 1302-1311 ◽  
Author(s):  
Apostolos Serletis ◽  
Elaheh Asadi Mehmandosti
Keyword(s):  
Economic Activity ◽  
Oil Prices ◽  
The United States ◽  
Output Growth ◽  
Oil Price ◽  
Real Output ◽  
Price Shocks ◽  
Real Price ◽  
The Relationship ◽  
Autoregressive Conditional Heteroscedasticity

We use the longest span data that have ever been studied before (from 1870 to 2014) to investigate the relationship between the price of oil and the level of economic activity in the United States. In the context of a bivariate (identified) structural generalized autoregressive conditional heteroscedasticity (GARCH)-in-Mean VAR in real output growth and the change in the real price of oil, we find that uncertainty about oil prices has had a negative and significant effect on real output. We also find that the responses of real output growth to positive and negative shocks are not very informative of whether they are symmetric or asymmetric, and that accounting for oil price uncertainty tends to amplify the negative dynamic response of real output growth to unfavorable (positive) oil price shocks.

Anti-Ideology of Entrepreneurship as an Attribute of Entrepreneurial Projects

2020 ◽  
Vol 26 (8) ◽  
pp. 830-839
Author(s):  
E. Ya. Litau
Keyword(s):  
Economic Development ◽  
Economic Activity ◽  
Creative Destruction ◽  
Innovative Activity ◽  
Entrepreneurial Activity ◽  
Methodological Principle ◽  
Historical Period ◽  
Professional Literature ◽  
Efficient System ◽  
The Relationship

Aim. The presented study examines and develops theoretical and methodological foundations that make it possible to distinguish innovative entrepreneurship among other economic phenomena.Tasks. The author identifies the specific features of entrepreneurship and its qualitative differences from other types of economic activity aimed at obtaining benefits, specifies the relationship between creative destruction and economic development, determines the attributes of innovative entrepreneurship.Methods. This study uses systematic analysis of professional literature on entrepreneurship to highlight the main attributes of entrepreneurial activity. The methodology of dialectical contradiction in its original Hegelian interpretation plays an important role in elaborating and substantiating the definition of entrepreneurship. The author considers innovative activity as creation of new values, which, according to the logic of dialectical development, destroy the old ones, triggering the process of economic development.Results. An approach to understanding the phenomenon of entrepreneurship is proposed, making it possible to distinguish this type of activity as significantly different from other types of economic activity, which may be externally similar but have different content. During the development of this approach, the concept of “anti-ideology” of entrepreneurship is introduced, which reflects the essence of innovative activity as a process of creative destruction. The necessary and sufficient attributes of entrepreneurial innovation are identified, making it possible to reflect the meaning of this phenomenon and verify this complex defining structural element in the system of economic relations. The study substantiates that the level of anti-ideology and public benefit can be used as criteria for assessing the significance of an entrepreneurial idea. A progressive model of anti-idea realization (PMA) is proposed based on the methodological principle. It can be used to develop an efficient system for evaluating startups within the framework of venture capitalism.Conclusions. Specification of the relationship between creative destruction and economic development is crucial to understanding the importance of innovative entrepreneurship. Each historical period creates its own demand for a specific type of entrepreneurs. The principle of anti-ideology, which lies at the heart of the PMA model, is key in identifying competitive commercial ideas, making it possible to focus resources and attention on projects that can make a significant contribution to economic development.

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