Crude Oil Price Changes and Inflation: Evidence for Asia and the Pacific Economies

Jiranyakul, Komain

doi:10.2139/ssrn.3884186

Cited by 4 publications

(2 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Meanwhile, (Kpagih, 2022) study on Nigeria explored the relationship between energy prices and inflation, finding no long-run impact and varied short-run impacts. (Jiranyakul, 2021) examination of Asian and Pacific economies emphasized a stable positive long-run relationship between crude oil prices and inflation during periods of low and less fluctuating oil prices. Collectively, these studies contribute nuanced insights for policymakers, urging them to adopt regionspecific and dynamic strategies.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Global Energy Price Volatility on Oil Derivative and Local Price in Jordan: Using DCC-GARCH Model

Adailah,

Al-Damour,

Al-Majali

2024

IJEEP

View full text Add to dashboard Cite

The central aim of this study is to evaluate the repercussions of global energy price fluctuations on the pricing of local oil derivatives in Jordan, and their subsequent impact on domestic price levels. This research seeks to propose risk mitigation strategies to address the challenges posed by energy price volatility, offering valuable insights for Jordanian policymakers. Given the dearth of understanding among policymakers and industry stakeholders regarding the economic ramifications of global energy prices on local markets, this study posits a statistically significant relationship, at a 5% significance level, between global energy prices, local oil derivative prices, and the prices of commodities and services. To investigate these dynamics, the study employs a DCC-GARCH (Dynamic Conditional Correlation Generalized Autoregressive Conditional Heteroskedasticity) model, utilizing monthly data spanning from Jan:2008 to Mar:2022, encompassing global energy prices, local energy prices, and the consumer price index. The study's findings reveal that fluctuations in global oil prices, specifically the Brent benchmark, have a discernible impact on local oil derivative prices in Jordan. However, the reverse causal relationship is not supported, indicating a unidirectional link from oil prices to oil derivatives. The estimated DCC-GARCH model further quantifies this connection, demonstrating that a 1% increase in Brent oil prices corresponds to a 0.21% increase in local oil derivative prices within Jordan. Moreover, a 1% uptick in local oil derivative prices corresponds to a 0.23% increase in the consumer price index. Based on these research outcomes, it is strongly recommended that measures be explored to effectively manage the volatility of oil derivative prices in Jordan. The implementation of such measures holds the potential to bolster local price stability and foster a more resilient economic environment.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Global Energy Price Volatility on Oil Derivative and Local Price in Jordan: Using DCC-GARCH Model

Adailah,

Al-Damour,

Al-Majali

2024

IJEEP

View full text Add to dashboard Cite

show abstract

“…In the short term, there is a weak relationship between crude oil price fluctuations and inflation in most cases, but this pass-through effect is more significant during times of high and more unstable oil prices. Therefore, a structural break appears to be significant in the long-and short-term pass-through effects of crude oil prices on consumer prices [18].…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the Relationship between Crude Oil Prices and Renewable Energy Production: Evidence from the USA

et al. 2023

View full text Add to dashboard Cite

This study aims to examine the short-term and long-term relationship between WTI oil prices and renewable energy production considering U.S. crude oil production, world oil prices, and other domestic and global factors. We employ several time-series analysis techniques, including the augmented Dickey-Fuller test and the Phillips-Perron test for unit roots; the long-term relationship is examined using fully modified OLS (FMOLS) and Park’s canonical cointegration regression (CCR). We also utilise an error correction model (ECM) to distinguish between short- and long-term effects. It is shown that at a constant level of crude oil production, an increase in energy production from renewable sources is accompanied by an increase in oil prices. Thus, at this stage of development, despite the increased production, renewable energy can be considered as complement to but not a substitute for crude oil. Our empirical estimations allow us to conclude that renewable energy production today is pushing the price of oil up rather than lowering it.

show abstract

Analysing the Asymmetric Effect of Oil Price Shock on Inflationary at the Aggregate and Disaggregated Levels in Malaysia

Tsen,

Mansur,

2023

Eurasian Studies in Business and Economics

View full text Add to dashboard Cite

Crude Oil Price Changes and Inflation: Evidence for Asia and the Pacific Economies

Cited by 4 publications

References 11 publications

The Impact of Global Energy Price Volatility on Oil Derivative and Local Price in Jordan: Using DCC-GARCH Model

The Impact of Global Energy Price Volatility on Oil Derivative and Local Price in Jordan: Using DCC-GARCH Model

Exploring the Relationship between Crude Oil Prices and Renewable Energy Production: Evidence from the USA

Analysing the Asymmetric Effect of Oil Price Shock on Inflationary at the Aggregate and Disaggregated Levels in Malaysia

Contact Info

Product

Resources

About