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Ripples of Oil Shocks: How Jordan’s Sectors React

Author

Listed:
  • Salem Adel Ziadat

    (Department of Finance, The School of Business, The University of Jordan, Amman 11942, Jordan)

  • Maher Khasawneh

    (Department of Banking and Financial Sciences, Business School, The Hashemite University, Zarqa 13133, Jordan)

Abstract

This paper examines the impact of different oil price shocks (supply, demand, and risk) on the sectoral indices of Jordan from 4 January 2000 until 24 September 2024 using the TVP connectedness approach of. The results point to the existence of a time dynamic component that governs the relationship between oil shocks and Jordanian sectors’ return and volatility. Within this, periods like the COVID-19 pandemic endured intense spillovers. Moreover, heterogeneity is observed in different oil shocks and sectors in terms of their role in the information transmission mechanism, with particular importance of oil demand shocks. Spillovers from oil shocks to Jordanian sectors’ volatility is stronger than Jordanian sectors’ returns. This paper carries important implications for policy holders, investors, and academics alike.

Suggested Citation

  • Salem Adel Ziadat & Maher Khasawneh, 2025. "Ripples of Oil Shocks: How Jordan’s Sectors React," JRFM, MDPI, vol. 18(4), pages 1-15, April.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:4:p:186-:d:1626074
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