Abstract

In this paper, we are trying to dig out impact of international oil prices on the stock exchange of Malaysia and Turkey. For this purpose, we have taken the time series data of 15 years and apply the correlation analysis to find out the relationship between them were international oil prices are dependent variables and Malaysia and Turkey stock exchange are dependent variables. We have observed that there is negative relationship between them. Our study is trying to show that Last decade witnessed that there were high volatile; it was recorded US$148 per barrel. Due to these prices the supply and demand were affected due to fluctuate in these prices. There are some notable significant events like invasion of iqra verses US.

Highlights

  • Oil is known as the major source of the energy

  • We have taken the data of 20 years of both international oil prices and stock exchange of Malaysia and Turkey

  • We have taken the data from 1990 to 2010 and applied the different models to analysis the impact of international oil prices on the stock exchange of Malaysia and turkey

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Summary

Introduction

Oil is known as the major source of the energy. In the world, it is seen that it has the strategic role and it has influenced on the supply and demand. Most of the scholars proved that International oil prices have affected on the stock exchange in several ways. The prime aim of this paper is to analysis the impact of oil prices on the stock market of Malaysia. International oil prices has effected on both importing and exporting country. Not any country which has no linked with the international oil prices. Last decade witnessed that there were high volatile; it was recorded US$148 per barrel Due to these prices the supply and demand were affected due to fluctuate in these prices. There are some notable significant events like invasion of iqra verses US These countries are known as the oil exporting 1) Yemen 2) Iran 3) Yemen. In India and china are the most exporting country in the world. After the financial crisis 2008, most of the countries were facing the problem of oil crisis (Figures 1-3)

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