The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan

This study analyzes the impact of energy production and foreign trade on the economic growth of the Turkic Republics using the Panel Data method for the period 2000-2020. Previous scientific studies have shown that many different variables impact economic growth. This study, unlike others, focuses on the effect of energy production and foreign trade volume on economic growth. The findings showed that energy production affects the economic growth of Turkic Republics. Another important finding is that the effect of foreign trade volume on economic growth is not significant when exports and imports are considered together. This is noteworthy as it shows that energy production invariably has a significant impact on the economic growth of a country. In other words, it would be a beneficial approach for a country to give importance to energy production to increase economic growth.

Section: Kazakhstanmentioning

confidence: 99%

The Effect of Energy Production and Foreign Trade on the Economic Growth of Turkic Republics: A Study Using Panel Data Analysis Method

Ibyzhanova,

Sultanova,

Aliyeva

et al. 2024

“…(Samanta and Zadeh, 2012;Partalidou et al, 2016;Raza et al, 2016;Arfaoui and Rejeb, 2017;Wei and Guo, 2017;Karhan and Aydın, 2018;Pandey and Vipul, 2018;Alio et al, 2019;Singhal et al, 2019;Kumar et al, 2019;Majidli and Guliyev, 2020;Kumar et al, 2021;Kumau et al, 2020;Gherghina et al, 2020;Humbatova et al, 2020;Karakuş, 2021). Some of the empirical studies employed vector autoregressive model (VAR) (Ding et al, 2016;Chkili, 2022;Grabias, 2022;Nairobi et al, 2022;Kelesbayev et al, 2022). However, not a single study was able to explain the specific relationship between gold, crude oil, and the stock market (Uthumrat, 2022 p.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of the effect of Energy Prices on Stock Indexes During the Epidemic Crisis

Guliyeva

2023

Petroleum and natural gas, which are among the most used energy sources in the world, have a significant impact on financial markets and macroeconomic indicators as they are used as raw materials in many fields. For this reason, US, England, Japan, Russia, Turkey, Brazil, and India, as energy importers and developing countries, may be affected positively or negatively by changes in energy prices. The main purpose of this study is to examine the correlation between Brent oil, crude oil (WTI), and natural gas (NG) prices and Moscow Stock Exchange Index (RTSI), Borsa Istanbul Index (XU100), Bovespa Brazilian Stock Exchange Index (BVSP), Indian National Stock Exchange Nifty 50 Index (NSEI), Standard and Poor’s 500 Index (S and P 500), London Stock Exchange (FTSE 100), and Тokyo Stock Exchange (N225). In the study, weekly data between February 16, 2020 and December 26, 2021 were examined. Vector autoregressive (VAR) model was used to examine the correlation between the variables included in the analysis, and the direction of the correlation between the variables was determined by the Granger causality test. According to the results of the VAR model, Brent oil and crude oil prices have significant effects on the indices included in the analysis; however, natural gas price does not have a significant effect on indices, Brent oil, and crude oil prices. On the other hand, the results of the Granger causality test confirm the findings of the VAR analysis. Granger causality test results reveal that in Granger’s sense, only BVSP and NSEI are the cause of Brent oil price, RTSI, BVSP, NSEI, XU100, S and P 500, FTSE 100, and N225 are the cause of WTI, and WTI is the cause of NSEI.

“…The years 1992-2020, on which the study is based, are also important in terms of the fluctuations in the economic development and development of Kazakhstan after independence. The global economic developments in this period (Kelesbayev et al, 2022a), especially the fluctuations in oil prices (Bolganbayev et al, 2021;Kelesbayev et al, 2022b;Aldıbekova, 2018) deeply affected the economy of Kazakhstan.…”

Section: Introductionmentioning

confidence: 99%

Analysis of Causality Relationship Between the Economic Growth and the Energy Production and Technological Investments in Kazakhstan

Myrzabekkyzy

Keneshbayev

Razakova

et al. 2022

This study analyzes the causality relationship between economic growth and energy production (Electricity and Thermal Energy) and technological investments in Kazakhstan between 1993 and 2020 using Cointegration and Vector Error Correction Models (VECM), and also performs impact analysis. Cointegration analysis was used to determine whether there is a long-term relationship between the variables that became stationary after the first difference. Energy production proved to be an important contributor to the economic growth of Kazakhstan. Compared to energy production, technology investments have a more decisive effect on economic growth. Therefore, the importance of technology investments for countries has been emphasized once again.