Linking crude oil prices and Middle East stock markets

Abstract

This study investigates the effects of oil prices (OPs) on stock markets in the Middle Eastern (ME) economies. The focus is on the dynamic relationship between crude OPs and stock market capitalisation (MC) in the ME. We use daily data from nine countries between the years 2001 and 2015 to examine the relationships based on Vector Autoregression (VAR), Vector Error Correction Model (VECM) and Impulse Response Function (IRF). VECM results indicate that there are long-run linkages between OP and MC in seven ME economies from 2001 to 2015, three countries in the pre-shale (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008) and four countries in the post-shale (2009)(2010)(2011)(2012)(2013)(2014)(2015) periods. The VAR models show short-run causality running from OP to MC in two countries from 2001 to 2015, five countries in pre-shale and six countries in post-shale periods. The IRFs verify the relationships between OPs and stock market value for most of the ME markets.

The spillover impacts of urbanization and energy usage on CO2 emissions: A regional analysis in the United States

“…Our results contribute to the literature by quantifying opposite direct and indirect effects of urbanization on state-level CO 2 emissions along with the negative effects of income and RPS on state-level emissions. The income effects provide additional support for the EKC, such that income growth reduces per capita CO 2 emissions (Aldy, 2005; Tawfeeq et al, 2019). For RPS, the indirect effects of CO 2 emission reductions are as large as the own state direct effects, indicating that cross-border impacts are important.…”

“…We argue that energy consumption can be used as an independent variable to explain CO 2 emissions. First, most of the empirical studies on the relationships between energy use, GDP, and CO 2 emissions have included energy consumption as a main independent variable (Soytas et al, 2007; Martinez-Zarzoso and Maruotti, 2011; Wang, et al, 2011; Chuai et al, 2012; Tawfeeq et al, 2019; Sadorsky, 2014). This literature has focused on the linkages between CO 2 emissions, income, and energy consumption by utilizing energy use variables as explanatory variables.…”

“…Thus, a U.S. state is more likely to adopt a law and or policy if its neighboring states have already done so (Mooney, 2001). In fact, geographical location has been identified as a critical factor of cross-region economic growth due to indicators like the diffusion of technology (Tawfeeq et al, 2019). We could argue that CO 2 emissions may decrease with technological development, then the diffusion of technology would likely enhance the conditions of neighboring environment.…”

The Response of Arab Region to Overcome Global Financial Crisis

“…The author(s) received no financial support for the research, authorship, and/or publication of this article. Tawfeeq et al (2019) find that the changing in the oil prices can cause negative/positive impact on these markets and this association relation has a dynamic long-run. 5.…”

“…4.For the Arab stock markets, Tawfeeq et al (2019) find that the changing in the oil prices can cause negative/positive impact on these markets and this association relation has a dynamic long-run.…”