Abstract
Oil is an important energy source and basic raw material in the manufacturing process. Therefore, the economies of every country in the world are directly or indirectly dependent on oil. The chain effect of the addiction in question also affects the financial markets. In the study, long-term relationship between energy prices (oil, natural gas and electricity prices) and stock market index for developed countries was analyzed with Multiple Structural Break Panel Cointegration Test. The causality relationship between the variables was examined with Dumitrescu-Hurlin Panel Causality Test. According to the findings of the analysis, it was determined that the series move together in the long term. However, while there was causality between oil prices and natural gas prices in the short term, it was revealed that there was no causality between electricity prices and stock market indices.
Highlights
The most important of the financial indicators are stock market indices
The fact that the relationship between financial indicators and energy price indexes and their differences varies depending on the economic development levels of countries, dependence on energy resources, the structure of economic regimes and other factors makes this issue even more interesting
Understanding the relationship between energy prices and financial indicators in countries with different characteristics in energy dependency, energy resources and development levels will be helpful in understanding the developing energy markets in recent years, by determining whether some of the characteristics that countries have are important in understanding these relations better
Summary
The most important of the financial indicators are stock market indices. On the one hand, show the development of the financial sector of the country as well as being an indicator of economic performance. The fact that the relationship between financial indicators and energy price indexes and their differences varies depending on the economic development levels of countries, dependence on energy resources, the structure of economic regimes and other factors makes this issue even more interesting. Understanding the relationship between energy prices and financial indicators in countries with different characteristics in energy dependency, energy resources and development levels will be helpful in understanding the developing energy markets in recent years, by determining whether some of the characteristics that countries have are important in understanding these relations better
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Energy Economics and Policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
