The Impacts of Oil Price Volatility on Strategic Investment of Oil Companies in North America, Asia, and Europe

This article investigates the long-term and short-term interactions between crude oil prices, crude oil exports, and domestic and foreign investment in Azerbaijan using annual data from 1999 to 2021. In this research, the ARDL model was used to assess co-integration and short-term relationships. In addition, this study used the FMOLS, DOLS, and CCR co-integration equations to explore long-term coefficients between variables. Granger causation tests were performed, Granger causation analysis was assessed using the Wald test (short-term or weak causation, long-term causation, and both short-term and long-term causation or strong causal relationship). The study proposed 9 hypotheses regarding the impact of oil prices and oil exports on domestic and foreign investment. Some of the hypotheses were generally, if not completely, justified. Based on the established models and tests carried out, there are co-integrating relationships between the variables. Model coefficients are selected according to their economic and statistical significance. It is necessary to increase competition for the market between foreign and domestic investments, not only through the exchange rate, but also through other economic instruments. The study revealed the importance of the exchange rate of the Manat.

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“…The crude oil price volatility plays an essential role for the oil companies when making a strategic investment decision (Zhu and Singh, 2016).…”

Section: The Impact Of the Oil Factor On Investments At The Company L...mentioning

confidence: 99%

“…According to Zhu and Singh (2016), different economic and political conditions may prompt oil companies in North America,…”

Section: The Impact Of the Oil Factor On Investments At The Company L...mentioning

confidence: 99%

Impact of Oil Factor on Investment: The Case of Azerbaijan

Humbatova

Huseyn

Hajiyev

2023

IJEEP

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“…Climate change is a serious problem at this time, climate change occurs due to an increase in the earth's surface temperature (Wardhono et al, 2016;Q. Zhu & Singh, 2016).…”

Section: Introductionmentioning

confidence: 99%

Determinants of Carbon Dioxide Emissions in ASEAN 4

Waluyo

Hakim

Rahayu

2023

IJMMU

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Climate change is becoming a serious problem today due to the increase in the earth's surface temperature. environmental damage is the impact of investment, trade, and economic growth processes. We analyzed the relationship between CO2, FDI inflows, trade, and GDP in ASEAN 4 during the period 1970 – 2018 using the Vector Autoregressive (VAR) method. Our results show that the relationship between FDI inflows, trade, and economic growth on CO2 emissions is dependent on each country in ASEAN 4. Therefore, universal policies in the ASEAN region cannot be applied.

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