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COVID-19 and the Oil Price – Stock Market Nexus: Evidence From Net Oil-Importing Countries
Open accessAbstract
This study focuses on the relation between stock price returns and oil price returns covering the COVID-19 period. This relation is examined for major net oil-importing Asian countries. Utilizing daily data, we fit a DCC-GARCH model. We find evidence of a positive co-movement between oil price returns and stock price returns during the COVID-19 period. This indicates that falling oil prices act as a negative signal for the stock market.
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“Some studies, starting with [32] and [33], say that when oil prices go up, the stock market goes down.”
From Dynamics of economic growth in ASEAN-5 countries: a panel ARDL approach (2024) · cites this paper as [33]
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Metadata
- Authors
- Prabheesh, K. P., Padhan, R., & Garg, B.
- Affiliations
- Indian Institute of Technology Hyderabad (IN)
- Indian Institute of Technology Ropar (IN)
- Venue
- Energy RESEARCH LETTERS
- Published
- 2020-07-15
- Volume
- 1
- Issue
- 2
- ISSN
- 2652-6433 (ISSN-L)
- 2652-6514
- OpenAlex
- W3046930072
- Cited by
- 245
- References
- 34
- Citations by year
- 2026: 1 · 2025: 7 · 2024: 18 · 2023: 35 · 2022: 48 · 2021: 103 · 2020: 33
- FWCI
- 46.53
- Type
- journal article
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Energy RESEARCH LETTERS (publishedVersion, cc-by-sa)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › COVID-19 Pandemic Impacts
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Risk and Volatility Modeling
- Keywords
- COVID-19 pandemic, oil prices, stock returns, Asian stock markets, dynamic conditional correlation
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