Recent Evidence on the Oil Price Shocks on Gulf Cooperation Council Stock Markets

Wong, Victor; Massah, Suzanna El

doi:10.1080/13571516.2017.1379216

Cited by 22 publications

(20 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The variance decomposition shows that the endogenous policy uncertainty responses propel the impact of oil shocks on the stock return. Lending credence to the oil price and stock markets interdependence, Wong and El-Massah (2018) study the effects of oil price changes on Gulf Cooperation Council stock markets between 2005 and 2015. Using the Granger causality and impulse response techniques, the result of the study showed a significant negative impact from oil price fluctuations on the GCC stock markets.…”

Section: Studies Conducted Bymentioning

confidence: 99%

“…Also, An et al (2018) concentrated on the oil-stock co-movement in the Chinese economy while Hamdi et al (2019) focused on the Gulf Cooperation Council. Surprisingly, among the studies on developing economies, Africa has not been a focal point (see Al-hajj, Al-Mulali and Solarin, 2018;Ji et al, 2018;Wong and El-Massah, 2018;Zhu et al, 2016), and the few studies on Africa (see Asaolu and Ilo, 2012;Aye, 2014;Gil-Alana and Yaya, 2014;Gupta and Modise, 2013;Lin, Wesseh and Appiah, 2014;Gourène and Mendy, 2018) are deficient in scope and methodology. For instance, the study conducted by Asaolu and Ilo (2012) analyzed the relationship between the stock market and oil price in Nigeria between year 1987 and 2007 using the cointegration technique.…”

mentioning

confidence: 99%

See 1 more Smart Citation

The Impact of Changes in Oil Price on Stock Market: Evidence from Africa

Kelikume¹,

Muritala²

2019

International Journal of Management, Economics and Social Sciences

View full text Add to dashboard Cite

This study examined the impact of oil price on African stock markets. Using quarterly data from five selected oil producing countries with stock market presence, from Q1:2010 to Q4:2018, the study deployed dynamic panel analysis technique for a model comprising stock returns, real gross domestic product growth rate, exchange rate and OPEC basket price. From the findings, an adverse effect of oil prices existed on stock markets in Africa, attributable to fragmented and underdeveloped capital markets. Also, real gross domestic product growth rate had a positive impact on African stock markets, thus, confirming that economic growth positively influences stock returns in the African stock markets. The relationship exhibited by stock markets and the oil price has an immediate implication of shifting foreign direct investments in and away from stock markets in African oildependent economies. Based on the empirical findings, the study recommended that oil-exporting developing countries should devise strategies that can ensure stability in their capital markets by vigorously pursuing pro-growth policies irrespective of the shocks in oil price and other exogenous macroeconomic indicators.

show abstract

Section: Studies Conducted Bymentioning

confidence: 99%

mentioning

confidence: 99%

The Impact of Changes in Oil Price on Stock Market: Evidence from Africa

Kelikume¹,

Muritala²

2019

International Journal of Management, Economics and Social Sciences

View full text Add to dashboard Cite

show abstract

“…Hamilton (1983) supported the idea that oil shocks were a contributing factor to at least some of the U.S. recessions prior to 1972 [6]. Wong and El (2017) suggested the need for more economic diversification at the country level in the Gulf Corporation Council region to mitigate high volatility in the event of oil shocks [7]. Hence, an accurate forecast of oil prices is of great interest to investors and policymakers, and it is a big challenge for researchers.…”

Section: Introductionmentioning

confidence: 83%

Improving the Forecasting Accuracy of Crude Oil Prices

2018

View full text Add to dashboard Cite

Currently, oil is the key element of energy sustainability, and its prices and economy have a strong mutual influence. Modeling a good method to accurately predict oil prices over long future horizons is challenging and of great interest to investors and policymakers. This paper forecasts oil prices using many predictor variables with a new time-varying weight combination approach. In doing so, we first use five single-variable time-varying parameter models to predict crude oil prices separately. Second, every special model is assigned a time-varying weight by the new combination approach. Finally, the forecasting results of oil prices are calculated. The results show that the paper's method is robust and performs well compared to random walk.

show abstract

“…The engagement of the private sector could be of great benefit as public-private partnership-based projects (especially in the infrastructure sector) have been phenomenal successes globally. The oil-exporting countries that are heavily reliant on oil revenue (such as Russia, Canada, and Norway) may focus on diversification for revenue sources (Wong & El Massah, 2018) to avoid any oil price shocks. At the same time, Russia may consider moving toward more renewable energy production from their current energy mix that is heavily biased in favor of non-renewable energy sources (Mitrova & Melnikov, 2019).…”

Section: Discussionmentioning

confidence: 99%

Socioeconomic Determinants of Renewable Energy Production in Emerging and Developed Countries

ElMassah¹

2021

Preprint

View full text Add to dashboard Cite

Energy is essential for development and economic growth, but traditional non-renewable energy sources are finite and have significant adverse environmental impacts. Therefore, there is an increasing interest in energy generation from renewable sources. However, research to date in this field does not sufficiently identify the common factors determining the uptake of renewable energy in emerging and developed countries. This paper addresses that gap by identifying the complex interrelationships between factors that determine the extent to which countries convert to renewable energy. The article's primary focus is a detailed statistical analysis of 10 developed and 16 emerging countries using annual data from 1976–2018. The objective is to examine the interrelationships and elasticities between increased production of renewable energy and three key socioeconomic variables; GDP, CO2 emissions, and oil price. This research uses panel data and time-series analyses to identify panel and country-specific elasticity of renewable energy production and dynamic causal relationships between these variables. It also applies fully modified and dynamic ordinary least square approaches. The study details the different interactions between the variables in each country. It uses an autoregressive distributed lag model to determine the long and short-run dynamics between renewable energy production and the three variables in each country. The paper shows there was a long-run elasticity between renewable energy and GDP in the developed countries and short-run dynamics between renewable energy and the other two variables. Whereas in the emerging countries category, there were long-run relationships between renewable energy and GDP, CO2 emissions, and oil price.

show abstract

Recent Evidence on the Oil Price Shocks on Gulf Cooperation Council Stock Markets

Cited by 22 publications

References 30 publications

The Impact of Changes in Oil Price on Stock Market: Evidence from Africa

The Impact of Changes in Oil Price on Stock Market: Evidence from Africa

Improving the Forecasting Accuracy of Crude Oil Prices

Socioeconomic Determinants of Renewable Energy Production in Emerging and Developed Countries

Contact Info

Product

Resources

About