IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-01-64.html
   My bibliography  Save this article

Global Prices of Crude Oil and the Stock Market Nexus in Indonesia

Author

Listed:
  • Januri Januri

    (Faculty of Economic, Universitas Muhammadiyah Sumatera Utara, Jl. Kapten Muchtar Basri No. 3, Medan, Sumatera Utara 20238, Indonesia)

Abstract

The research intends to analyze the connection among the global prices of crude oil and stock market of Indonesia for the period of 2010 to 2019. The international prices for crude oil attributed to the prices of West Texas Intermediary (WTI) crude oil, whereas the Indonesian stock indices were considered as stock exchange factors in Indonesia. Daily data have been examined using the causal model for LVAR. The findings of he test demonstrated that a cogent and dynamic connection exists between global crude oil prices and the composite indices of Indonesia, in the long as well as short run. The dimensions of this association seem to be positive and thus the composite index also rises (fall) unless the global price of crude oil increases (decreases). Such a result is a required factor for the government's economic policies of Indonesia as well as in the management of its investment patterns by the investors.

Suggested Citation

  • Januri Januri, 2021. "Global Prices of Crude Oil and the Stock Market Nexus in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 551-557.
    • Handle: RePEc:eco:journ2:2021-01-64
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/10690/5638
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/10690/5638
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Crude oil; Stock market; Global prices;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-01-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.