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Asymmetric Causality Relationship between Oil Prices and Inflation in BRIC Countries

Author

Listed:
  • Aziza Syzdykova

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan)

  • Aktolkin Abubakirova

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan)

  • Lyazzat Kudabayeva

    (Taraz Regional University named after M.Kh.Dulaty, Taraz, Kazakhstan)

  • Ardak Zhantayeva

    (Taraz Regional University named after M.Kh.Dulaty, Taraz, Kazakhstan)

  • Aizhan Omarova

    (Yessenov University, Aktau, Kazakhstan)

Abstract

Sharp and persistent increases in oil prices continue to attract the attention of policy makers and economists, and many studies are conducted on the inflationary effects of oil price shocks. Knowledge of the inflationary effects of oil price increases will help monetary authorities adopt appropriate policies to meet these shocks. In this study, the asymmetric relationship between inflation rates and oil prices in the BRIC countries, which alone consumes approximately 28% of the world s total oil consumption in 2020, has been examined. In this context, the relationship between the variables was investigated with the asymmetric causality analysis method developed by Hatemi-J and Roca (2014) using monthly data for the period January 2001 to September 2021. As a result of the analysis applied in the study, different results were obtained for the BRIC countries.

Suggested Citation

  • Aziza Syzdykova & Aktolkin Abubakirova & Lyazzat Kudabayeva & Ardak Zhantayeva & Aizhan Omarova, 2022. "Asymmetric Causality Relationship between Oil Prices and Inflation in BRIC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 184-191, May.
    • Handle: RePEc:eco:journ2:2022-03-19
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    2. Bigerna, Simona, 2023. "Energy price shocks, exchange rates and inflation nexus," Energy Economics, Elsevier, vol. 128(C).
    3. Aktolkin Abubakirova & Aizhan Omarova & Gulimai Amaniyazova & Bibigul Saubetova & Aigul Esturlieva, 2023. "Determinants of Energy Consumption in Central Asian Countries: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 288-294, November.

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    More about this item

    Keywords

    oil prices; inflation; BRIC countries; asymmetric causality relationship;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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