Oil price fluctuations and the small open economies of Southeast Asia: An analysis using vector autoregression with block exogeneity

2018 ◽  
Vol 54 ◽  
pp. 1-21 ◽  
Author(s):  
Tuan Khai Vu ◽  
Hayato Nakata
Keyword(s):  
Southeast Asia ◽  
Vector Autoregression ◽  
Open Economies ◽  
Oil Price ◽  
Small Open Economies ◽  
Price Fluctuations

scholarly journals The Effects of Commodity Discoveries on Small Open Economies: Empirical Evidence from the Falkland Islands

Economies ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 106
Author(s):  
Morley
Keyword(s):  
Empirical Evidence ◽  
Event Study ◽  
Open Economy ◽  
Open Economies ◽  
Small Open Economy ◽  
Oil Price ◽  
Falkland Islands ◽  
Small Open Economies ◽  
Study Approach ◽  
Positive Effect

The aim of this study is to determine the effects of discovering oil on the performance of a small open economy, in this case the Falkland Islands. Using an event study approach and the return on one of the Falkland Islands’ main companies, the results suggest that the discovery of oil has mostly had a positive effect on this company, which serves as a proxy for the Falkland Islands economy. In addition, using an EGARCH approach, there is evidence that the discovery of oil has reduced the volatility or risk of the company and therefore potentially the economy as a whole. However, when the oil price is added to the model, this tends to dominate the effect of the discovery.

The Impact of Oil Price Fluctuations on Industry Stock Returns: Evidence from International Markets

2018 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Elias Randjbaran ◽  
Reza Tahmoorespour ◽  
Marjan Rezvani ◽  
Meysam Safari
Keyword(s):  
Stock Returns ◽  
Oil And Gas ◽  
Negative Relationship ◽  
The United States ◽  
Oil Price ◽  
Price Variation ◽  
Price Changes ◽  
Price Fluctuations ◽  
Food And Beverage ◽  
The Impact

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

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