Abstract
One of the most important energy resources in the world oil plays an important role in the economy. Nowadays, oil has the feature of being the most preferred energy source with a share of 33% in energy consumption in the global arena. In addition to the fact that oil prices affect economic activity, it is generally thought that oil prices are affected by stock prices. The aim of this study is to examine the long- and short-term relationship between stock prices and oil prices in the sectors covered by Borsa Istanbul (BIST) through daily data for the 2003-2021 period. Vector error correction model (VECM) and Granger causality test based on Vector Auto-Regressive (VAR) system were used. According to the results, there is no causality relationship from oil prices to stock prices, but there is a causal relationship from stock prices to oil prices. Therefore, it has been suggested that investors operating in the oil market should follow the changes in stock prices.
Published Version (
Free)
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 call