scholarly journals Does the Development of Bioenergy Exacerbate the Price Increase of Maize?

2019 ◽  
Vol 11 (18) ◽  
pp. 4845
Author(s):  
Zhengyi Dong
Keyword(s):  
Oil Prices ◽  
Food Prices ◽  
Biomass Energy ◽  
Price Increase ◽  
Oil Price ◽  
Price Ratio ◽  
Cost Channel ◽  
The Cost ◽  
The Relationship

The relationship between oil prices and food prices is complex, and maize is the most prominent example. Whether the development of bioenergy will exacerbate the price increase of maize caused by the increasing price of oil is a topic that is attracting great attention. This paper studies the relationship between oil prices and maize prices. First, the effects of the development of biomass energy on maize price in theory is analyzed by constructing a theoretical model that includes the effects of the cost channel and the demand channel, while setting the maize–oil price ratio as a trigger for the demand channel. Then, this paper empirically analyzes the price data. Both theoretical and empirical analyses show the effects of the demand channel in the long term; that is, the effect of the development of bioenergy on maize prices is weak, and maize prices did not increase sharply. The effect of the cost channel is the main cause of the increases in the price of maize and other foods.

scholarly journals Research on the Impact of International Oil Prices on the Economy of Russia

2020 ◽  
Vol 214 ◽  
pp. 03006
Author(s):  
Jiuxia Wu
Keyword(s):  
Economic Growth ◽  
Resource Curse ◽  
Oil Prices ◽  
Oil Price ◽  
Short Term ◽  
Russian Economy ◽  
Income Determination ◽  
The Impact ◽  
The Relationship

In the process of Russian economic development, the oil industry is one of the important pillar industries. More than 50% of the total revenue of the Russian government comes from the oil and gas industry. Oil and oil products exports account for about 56.9% of Russia’s total export[1]. So Russia’s economy is inextricably linked to oil prices. Rosneft’s role in budgetary revenue sources is growing. In the development of the world economy, the change of international oil price affects the development of the Russian economy. This paper reviews the relevant theories about the relationship between oil price and Russia’s economic growth. Besides, the short-term and long-term effects of oil price fluctuation on Russian economy are analyzed with Keynes’s income determination theory and “resource Curse” theory[2] respectively. In addition, the granger causality test is used to analyze the relationship between the fluctuation of oil price and the change of Russian GDP. The following conclusions are drawn from the analysis. Firstly, oil price rise is beneficial to Russian economic growth in the short term, but will hinder Russia’s economic long-term development. Secondly, the fluctuation of oil price is the granger cause of the change of Russian GDP. However, the change of Russian GDP is not the granger cause of the fluctuation of oil price.

scholarly journals The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis

2014 ◽  
Author(s):  
Ahmet Ay ◽  
Şerife Özşahin ◽  
Mustafa Gerçeker
Keyword(s):  
Exchange Rate ◽  
Public Expenditure ◽  
Nominal Exchange Rate ◽  
Oil Price ◽  
Quarterly Data ◽  
Sectoral Output ◽  
The Cost ◽  
Bound Test ◽  
The Relationship

In this study, it is investigated the existence of the long term relationship between nominal exchange rate and sectoral output for seven different sectors in Turkey by using control variables including money supply, total public expenditure, oil price and unemployment rate. For this purpose, possible relations are tried to be determined by using bound test and ARDL method for the period 1998 Q1-2011 Q3 with quarterly data. As a result of the bound test, it is achieved that there is a long term relationship in all sectors excluding construction. Based on this finding, it is estimated the long term coefficients and equations for the six sectors. These long term coefficients indicate that the rise in the TL/dollar nominal exchange rate affects sectoral output negatively in all sectors excluding finance because of the cost effects of imported input usage.

scholarly journals Shades between Black and Green Investment: Balance or Imbalance?

2021 ◽  
Vol 13 (9) ◽  
pp. 5024
Author(s):  
 Vítor Manuel de Sousa Gabriel ◽  
María Mar Miralles-Quirós ◽  
José Luis Miralles-Quirós
Keyword(s):  
Risk Factor ◽  
Oil Prices ◽  
Oil Price ◽  
Short Term ◽  
Environmental Indices ◽  
Long Run ◽  
Green Investment ◽  
Bounds Test

This paper analyses the links established between environmental indices and the oil price adopting a double perspective, long-term and short-term relationships. For that purpose, we employ the Bounds Test and bivariate conditional heteroscedasticity models. In the long run, the pattern of behaviour of environmental indices clearly differed from that of the oil prices, and it was not possible to identify cointegrating vectors. In the short-term, it was possible to conclude that, in contemporaneous terms, the variables studied tended to follow similar paths. When the lag of the oil price variable was considered, the impacts produced on the stock market sectors were partially of a negative nature, which allows us to suppose that this variable plays the role of a risk factor for environmental investment.

Exploring the inflationary effect of oil price in the US

2019 ◽  
Vol 13 (1) ◽  
pp. 60-76 ◽  
Author(s):  
Amine Lahiani
Keyword(s):  
Growth Rate ◽  
Structural Breaks ◽  
Oil Prices ◽  
Oil Price ◽  
Inflation Expectations ◽  
Oil Price Shocks ◽  
Price Shocks ◽  
Content Type ◽  
The Us ◽  
The Relationship

PurposeThe purpose of this paper is to explore the effect of oil price shocks on the US Consumer Price Index over the monthly period from 1876:01 to 2014:04.Design/methodology/approachThe author uses the Bai and Perron (2003) structural break test to split the data sample into sub-periods delimited by the computed break dates. Afterwards, the author uses the quantile treatment effects over the full sample and then, by including sub-periods dummies to accommodate the selected structural breaks that drive the relationship between inflation and oil price growth.FindingsThe findings include a decreased transmission effect of oil price changes on inflation in recent years; a varied elasticity of inflation to the growth rate of oil prices across the distribution; and, finally, evidence of asymmetry in the relationship between the growth rate of oil prices and inflation, with a higher transmission mechanism for decreasing rather than increasing oil prices.Practical implicationsPolicymakers should remain alert to monitoring potential inflation increases and should take precautionary measures to anchor inflation expectations, because inflation reacts differently to positive and negative oil price shocks. Moreover, authorities should consider the asymmetric reaction of inflation to oil price shocks to adopt an appropriate monetary policy strategy to achieve the price stability target.Originality/valueThe paper used a quantile regression model with structural breaks, which has not yet been used in the literature.

Relationship-Specificity, Contract Enforceability, and Income Smoothing

2013 ◽  
Vol 88 (5) ◽  
pp. 1629-1656 ◽  
Author(s):  
Yiwei Dou ◽  
Ole-Kristian Hope ◽  
Wayne B. Thomas
Keyword(s):  
Incomplete Contracts ◽  
Optimal Investment ◽  
Income Smoothing ◽  
Additional Risk ◽  
Specific Investment ◽  
Specific Investments ◽  
Contractual Obligations ◽  
The Cost ◽  
The Relationship

ABSTRACT: Contracting parties, such as the firm and its supplier, have cost-reducing incentives to make investments that support the unique transactions between them. However, to the extent that one party may renege on its contractual obligations, the other party incurring the cost of the relationship-specific investment bears additional risk and is less willing to invest such that sub-optimal investment occurs. In countries where enforceability of explicit contracts is particularly weak, parties have incentives to signal their willingness to fulfill implicit claims and maintain long-term relationships. We predict that firms engage in income smoothing to send such a signal to their suppliers. Consistent with these expectations, we find that firms that both reside in countries with weak contract enforceability and operate in industries with a greater need for relationship-specific investments tend to smooth reported income more. We further decompose income smoothing into “informational” and “garbled” components and find that results are driven by the informational component of income smoothing. Our results support the important role that accruals play in providing information in the presence of incomplete contracts. JEL Classifications: F14, K12, L14, M41, M43

scholarly journals Oil price effect on sectoral stock returns: A conditional covariance and correlation approach for Mexico

2020 ◽  
Vol 16 (1) ◽  
pp. 1-15
Author(s):  
Rodrigo A. Morales Fernández Rafaelly ◽  
Roberto J. Santillán-Salgado
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Spillover Effect ◽  
Oil Prices ◽  
Oil Price ◽  
Price Effect ◽  
Stock Market Performance ◽  
Original Contribution ◽  
Bivariate Garch Model ◽  
The Relationship

This paper analyzes the relationship between the volatility of oil price and selected sectoral stock returns in Mexico (industrials, materials, financials and consumer discretionary) by implementing a Diagonal VECH-type bivariate GARCH model in order to estimate conditional covariances and correlations. The econometric results suggest that there exists a statistically significant relationship between sector indices, as well as between Mexico’s aggregate stock exchange returns, and variations in oil prices. Conditional correlations suggest that during most of the analyzed period, the relationship between oil price fluctuations and sectoral stock returns is positive. The recommendation, supported by these results, is that investors should take into consideration the interaction between the analyzed variables in order to generate more robust risk-hedge strategies. An important limitation for this work is information availability at sector level in the country. The original contribution of this paper lies mainly in the analysis of the influence of oil prices over sectoral indices of the Mexican Stock Exchange. These results provide more support to the current that suggests that a price increase in oil has a direct spillover effect on stock market performance.

scholarly journals The Impact of Oil Prices on the Economy of Vietnam

2015 ◽  
Vol 22 (04) ◽  
pp. 142-159
Author(s):  
Hoa Nguyen Thi Lien ◽  
Trang Tran Thu ◽  
Giang Nguyen Le Ngan
Keyword(s):  
Industrial Production ◽  
Oil Prices ◽  
Test Results ◽  
Macroeconomic Performance ◽  
Price Shocks ◽  
Short Term ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

In this paper we study the relationship between oil prices and macroeconomic performance by investigating the impact of oil price shocks on key macroeconomic variables of Vietnam over the 2001–2012 period. In order to test the relationship between oil prices and the value of industrial production, we use cointegration method to consider the long-term relationship and Error Correction Model (ECM) to ponder the short-term one. The test results show that the price of oil and the value of industrial production in Vietnam are positively correlated in the long term, whereas in the short term the volatility of oil prices in the last two months will negatively affect the fluctuation in the value of the current industrial production.

scholarly journals Effect of Oil Prices Fluctuation on Stock Indices-Comparative Study

2021 ◽  
pp. 80-89
Author(s):  
Ahmed J. Al-Dahlaki ◽  
Ghadhanfer A. Hussein ◽  
Mohammed S. Ahmed
Keyword(s):  
New York ◽  
Saudi Arabia ◽  
Comparative Study ◽  
Financial Markets ◽  
Crude Oil ◽  
Oil Prices ◽  
Oil Price ◽  
Market Index ◽  
Stock Indices ◽  
The Relationship

The study aims to examine the nature of the relationship and the effect of oil price fluctuations on stock indices in the financial markets of exporting and importing countries. For achieving that, the price of Brent crude oil was chosen as an index from the stock markets in Saudi Arabia, Russia and Iraq as oilexporting countries. While the market index was chosen from the markets of New York, Shanghai and Nikkei as an oil importer. The study came out with a set of conclusions and recommendations. The most important is that the degree of response of stock indices to fluctuations in oil prices was greater in exporting countries than in importing countries.

scholarly journals Relationship between International Crude Oil Price and Indian Stock Market (NSE)

2011 ◽  
pp. 63-73
Author(s):  
Rajendra Mahunta
Keyword(s):  
Crude Oil ◽  
Global Economy ◽  
Stock Exchange ◽  
Oil Prices ◽  
Oil Price ◽  
Raw Material ◽  
Crude Oil Price ◽  
New Era ◽  
Crude Oil Prices

In this new era of economic growth, the exceptional increase in the crude oil prices is one of the significant developments that affect the global economy. Crude oil is an important raw material used for manufacturing sectors, so that increase in the price of oil is bound to warn the economy with inflationary inclination. The study examine the long-term relationships between CNX NIFTY FIFTY index of National Stock Exchange and crude price by using various econometric test. The surge in crude oil prices during recent years has generated a lot of interest in the relationship between oil price and equity markets. The study covers the period between 01.01.2010 and 31.12.2014 and was performed with data consisting of 1245 days. The empirical results show there was a cointegrated long-term relationship between CNX index and crude price. Granger causality results reveal that there is unidirectional causality exists and crude oil price causes NSE (CNX) but NSE (CNX) does not cause oil price.

scholarly journals Oil Price and Exchange Rate Nexus-Evidence From Nigeria

2019 ◽  
Vol 9 (1) ◽  
pp. 298 ◽  
Author(s):  
Dauda Mohammed ◽  
J. Udoma Afangideh ◽  
Oloruntoba S. Ogundele
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Causal Effect ◽  
Oil Prices ◽  
Oil Price ◽  
Upward Movement ◽  
Oil Market ◽  
Daily Data ◽  
The Exchange Rate ◽  
The Relationship

Price swings at international crude oil market significantly impact on macroeconomic fundamentals of oil dependent countries. Hence, understanding the relationship between oil price movement and the exchange rate has become imperative especially for oil exporting countries. This paper examines the causal effect between oil prices and Nigerian naira–US dollar exchange rate using frequency daily data for the period 12/07/2010-31/08/2017. Generalized autoregressive conditional heteroskedasticity (GARCH) and exponential GARCH (EGARCH) models were used to estimate our oil prices and nominal naira exchange rate equation. Our findings reveal a positive relation between oil price and naira exchange rate meaning that an upward movement in the price of oil causes the naira to depreciate. Conversely, any fall in oil price leads to appreciation in the value of the naira. The result has important policy implication given that 90% of the total annual foreign revenue of Nigeria comes from oil thus oil price shocks have severe impact on the Nigerian economy. This justifies the need for Nigeria’s economic diversification to minimize the vulnerability of the Nigerian economy to vagaries of the international crude oil market and to delink the exchange rate and reserve movement from developments in oil prices.

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