Abstract
A fuel market is an important sector of the economy and fuel prices influence the prices of numerous products and services. This paper focuses on the analysis of the interrelationships between markets of fuels in the Visegrad Group (V4) countries. The research is based on weekly prices of Pb95 gasoline and diesel in the Czech Republic, Hungary, Poland, and Slovakia observed from January 2016 through December 2020. After performing the preliminary statistical analysis, the long-term relationships between the prices of fuels are investigated through application of the cointegrated regression Durbin–Watson (CRDW) test. Next, Granger causality is tested to answer the question of whether changes in prices of fuels in separate V4 countries Granger-cause changes in prices of fuels in other V4 countries. The cointegration research uses logarithmic prices, whereas causality investigation is based on their first differences. The results reveal long-term relationships between the prices of Pb95 gasoline in the Czech Republic and prices in other V4 countries as well as Granger causality flowing from diesel price changes in Poland to diesel price changes in other V4 countries and bilateral causation between changes in the prices of Pb95 gasoline in Poland, Hungary and Slovakia.
Highlights
The Visegrad Group, initially named the Visegrad Triangle, was established in 1991 by three Central European countries: Czechoslovakia, Hungary and Poland
Our results provided new insight revealing long-term relationships between the prices of Pb95 gasoline in the Czech Republic and prices in other V4 countries, as well as Granger causality flowing from diesel price changes in Poland to diesel price changes in other V4 countries and bilateral causation between changes in the prices of
This paper aimed to investigate the interrelationships between fuel markets in the Visegrad Group countries
Summary
The Visegrad Group, initially named the Visegrad Triangle, was established in 1991 by three Central European countries: Czechoslovakia, Hungary and Poland. In 1993, as a result of the breakup of Czechoslovakia into the Czech Republic and Slovakia, the Visegrad. Triangle was transformed into the Visegrad V4 Group. At present, these four countries collaborate closely for the purposes of developing cultural, economic, energy and military cooperation. Of the EU-27’s population, making it the third-largest consumer market in the European. In 2019, the V4 countries’ GDP reached EUR 996 billion (in current prices), which made them the sixth largest economic force in the EU. Poland is the country that makes the biggest contribution to V40 s GDP (53.4%), the Czech Republic with 22.5%, Hungary with 14.7% and Slovakia with 9.4%. In the period 1991–2019, an over 19-fold increase was observed in the value of V4 countries’ exports and an over 16-fold increase in the value of
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