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Dynamics of Canadian Oil Price and its Impact on Exchange Rate and Stock Market

Author

Listed:
  • Hussein Alzyoud

    (Faculty of Business, Athabasca University, Canada,)

  • Eric Zengxiang Wang

    (Faculty of Business, Athabasca University, Canada,)

  • Michael Glenn Basso

    (Faculty of Business, Athabasca University, Canada.)

Abstract

The objective of this study is to analyse the impact of crude oil prices (COP) on exchange rate and stock market returns in Canada for the period of 1986 2015. The results of the study suggest that there was no cointegration among COP, exchange rate and stock market returns. Regression analysis shows that COP and exchange rate, and their variations have a positive and significant impact on the Canadian stock market returns. Policy implications are also discussed.

Suggested Citation

  • Hussein Alzyoud & Eric Zengxiang Wang & Michael Glenn Basso, 2018. "Dynamics of Canadian Oil Price and its Impact on Exchange Rate and Stock Market," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 107-114.
    • Handle: RePEc:eco:journ2:2018-03-16
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    References listed on IDEAS

    as
    1. Mohamed El Hedi Arouri & Jamel Jouini & Nhu Tuyen Le & Duc Khuong Nguyen, 2012. "On the Relationship between World Oil Prices and GCC Stock Markets," Journal of Quantitative Economics, The Indian Econometric Society, vol. 10(1), pages 98-120, January.
    2. Apergis, Nicholas & Miller, Stephen M., 2009. "Do structural oil-market shocks affect stock prices?," Energy Economics, Elsevier, vol. 31(4), pages 569-575, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Muhammad Ali, Khalid M. Iraqi, Abdul Waheed Khan, 2019. "Impact of Oil Prices on Stock Market Performance: Evidence from Top Oil Importing Countries," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 4(2), pages 1-14, October.
    2. Muhammad Syafii Antonio & Aam S. Rusydiana & Wahyu Sugeng Imam Soeparno & Lina Nugraha Rani & Wahyu Ario Pratomo & Abdillah Arif Nasution, 2021. "The Impact of Oil Price and Other Macroeconomic Variables on The Islamic and Conventional Stock Index in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 418-424.
    3. Aktolkin Abubakirova & Aziza Syzdykova & Assan Dosmakhanbet & Lyazzat Kudabayeva & Gulnar Abdulina, 2021. "Relationship between Oil Prices and Stock Prices in BRICS-T Countries: Symmetric and Asymmetric Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 140-148.
    4. Kongolo Musampa & Joel Hinaunye Eita & Christelle Meniago, 2023. "The Effects of Oil Price Volatility on South African Stock Market Returns," Economies, MDPI, vol. 12(1), pages 1-20, December.
    5. Sekhar M. Amba & Binh H. Nguyen, 2019. "Exchange Rate And Equity Price Relationship: Empirical Evidence From Mexican And Canadian Markets," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 13(2), pages 33-43.
    6. Kisswani, Khalid M. & Elian, Mohammad I., 2021. "Analyzing the (a)symmetric impacts of oil price, economic policy uncertainty, and global geopolitical risk on exchange rate," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).
    7. Stanley Uche Akachukwu, 2022. "Oil price dynamics and firms' stock returns in the Nigeria stock market," African Development Review, African Development Bank, vol. 34(4), pages 472-486, December.

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    More about this item

    Keywords

    Stock Market; Crude Oil; Exchange Rate; Rolling; OLS; DOLS; GARCH.;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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