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Analysis of Interrelationships between Markets of Fuels in the Visegrad Group Countries from 2016 to 2020

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  • Anna Górska

    (Department of Econometrics and Statistics, Institute of Economics and Finance, Warsaw University of Life Sciences-SGGW, Nowoursynowska 166, 02-787 Warsaw, Poland)

  • Monika Krawiec

    (Department of Econometrics and Statistics, Institute of Economics and Finance, Warsaw University of Life Sciences-SGGW, Nowoursynowska 166, 02-787 Warsaw, Poland)

Abstract

A fuel market is an important sector of the economy and fuel prices influence the prices of numerous products and services. This paper focuses on the analysis of the interrelationships between markets of fuels in the Visegrad Group (V4) countries. The research is based on weekly prices of Pb95 gasoline and diesel in the Czech Republic, Hungary, Poland, and Slovakia observed from January 2016 through December 2020. After performing the preliminary statistical analysis, the long-term relationships between the prices of fuels are investigated through application of the cointegrated regression Durbin–Watson (CRDW) test. Next, Granger causality is tested to answer the question of whether changes in prices of fuels in separate V4 countries Granger-cause changes in prices of fuels in other V4 countries. The cointegration research uses logarithmic prices, whereas causality investigation is based on their first differences. The results reveal long-term relationships between the prices of Pb95 gasoline in the Czech Republic and prices in other V4 countries as well as Granger causality flowing from diesel price changes in Poland to diesel price changes in other V4 countries and bilateral causation between changes in the prices of Pb95 gasoline in Poland, Hungary and Slovakia.

Suggested Citation

  • Anna Górska & Monika Krawiec, 2021. "Analysis of Interrelationships between Markets of Fuels in the Visegrad Group Countries from 2016 to 2020," Energies, MDPI, vol. 14(20), pages 1-14, October.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:20:p:6536-:d:654144
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    1. Jan Polaszczyk & Maria Kubacka, 2021. "Comparison Analysis of Energy Markets‘ Aspects in the Visegrad Group Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 808-823.

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