2020
DOI: 10.1016/j.eneco.2020.104769
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Have commodities become a financial asset? Evidence from ten years of Financialization

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Cited by 62 publications
(49 citation statements)
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References 67 publications
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“…Adams et al . (2020) analyze the effect of fundamental versus financial factors – with the latter including the VIX index, S&P500 returns and macroeconomic uncertainty – on crude oil returns and volatility between 1990 and 2019. They find that, while the connection between oil and financial factors had dramatically increased over time, it has diminished somewhat since late 2014 13 .…”
Section: Financialization After the Gfcmentioning
confidence: 99%
“…Adams et al . (2020) analyze the effect of fundamental versus financial factors – with the latter including the VIX index, S&P500 returns and macroeconomic uncertainty – on crude oil returns and volatility between 1990 and 2019. They find that, while the connection between oil and financial factors had dramatically increased over time, it has diminished somewhat since late 2014 13 .…”
Section: Financialization After the Gfcmentioning
confidence: 99%
“…Moreover, world commodity prices are typically determined on commodity derivatives markets, in which financial investors have gained a dominant role over the last decade, known as ‘financialization of commodity markets’ (Ederer et al 2016 ). Thus, the dynamics of world commodity prices, including excess volatility and short-term price variation, has been influenced by activities financial actors (Cheng and Xiong 2014 ; Adams et al 2020 ). As these futures prices are used as the benchmark for all other prices set along physical commodity chains, the behaviour of financial investors in the current crisis plays a crucial role in the current challenges faced by commodity-dependent countries (Staritz et al 2018 ).…”
Section: Commodity Price Dynamics and The ‘Resource Curse’mentioning
confidence: 99%
“…However, with the deregulation of these commodity derivatives exchanges in the early 2000s, the structure of actors active on these markets has changed and financial investors have emerged as the dominate type of trade (‘financialization of commodity markets’). Thus, the level and the volatility of world commodity prices are increasingly influenced by financial market dynamics (Adams et al 2020 ). Further, the organization of global commodity chains, in which commodities are trade and prices are transmitted from the global to the local level, has changed towards the governance by transnational buyers and traders (Staritz et al 2018 ).…”
Section: Policy Areas For Coping With Price Volatility and The Resourmentioning
confidence: 99%
“…With the acceleration of financial innovation, the international crude oil market has experienced the evolution of the spot market, forward market, and future market, which established its financial attribute. Given the financial attribute, oil can act as a commodity and an investment financial asset, and its price trends are affected by the US dollar index (USDX) and speculative factors [1]. More importantly, there are dynamic characteristics in oil's different attributes.…”
Section: Introductionmentioning
confidence: 99%