The Impacts of Crude Oil Market Structure on Stock Market Growth: Evidence from Asian Countries

Abstract

The purpose of this paper is to investigate the impact of crude oil market structure on stock market volatility in Asian countries in the period 2008–2017. We integrate network analysis with the SGMM estimation technique to achieve the research objective. Network analysis was conducted with 43 Asian countries, while analysis of the impact of crude oil market structure on stock markets was performed with a sample of 19 countries. The results show that the stock market has a positive growth in countries with stronger export capacity while it is negatively affected in larger importing countries. In addition, the research results show that the stock market’s growth is greater in countries with a central position in the crude oil market. The study results will be useful for countries in reducing the undesirable impact of crude oil market on the stock market.

Reinvestigating the Oil Dependency of the GCC Countries’ Stock Market: A Regime-Switching Cointegration Approach

“…Second, oil market fluctuations have a more substantial impact on oil-importing countries. Le et al (2022) explored the impact of oil market structures on stock market growth, looking at the leading oil exporters and importers among 19 Asian countries. Integrated network analysis using the generalized sequential method of moments (SGMM) estimation technique was applied to data from 2008 to 2017.…”

VOLATILITY SPILLOVER, HEDGING AND PORTFOLIO DIVERSIFICATION BETWEEN OIL MARKET AND S&P SECTORAL INDICES

“…Caporale et al (2022) show that the crude oil market has a significantly positive (negative) effect on energy sectors (financial sectors) by considering BRICS (Brazil, Russia, India, China, and South Africa). Lastly, Le and Do (2022) specify that crude oil has a positive (negative) impact on oil-exporting (oil-importing) Asian countries' stock markets.…”