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A Dynamic Network Comparison Analysis of Crude Oil Trade: Evidence from Eastern Europe and Eurasia

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  • Masoud Shirazi Abdolrasoul Ghasemi Teymour Mohammadi Jurica Šimurina Ali Faridzad Atefeh Taklif

    (Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran. Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran. Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran. Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia. Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran. Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran.)

Abstract

This article characterizes a dynamic crude oil trade network of Eastern Europe and Eurasia using the network connectedness measure of Diebold and Yilmaz (2014, 2015) and asymmetric reaction of crude oil bilateral trade flow in response to the positive and negative changes of its key determinants using the nonlinear panel ARDL model. Results indicate the existence of large and time-varying spillovers with a considerable explanatory power among the crude oil trade flow volatility of Iran, Russia, US and Saudi Arabia in Eastern Europe and Eurasia crude oil trade network. The findings also show that crude oil trade flow of Eastern Europe and Eurasia experiences net volatility transmission to Iran, Russia and US respectively, whereas it is a net volatility receiver from Saudi Arabia. Also based on gravity models, the analysis confirms the existence of impact, reaction and adjustment asymmetry through different magnitude among network participants. JEL Classification: C22, F13, Q370, Q43, Q47, Q370, C320

Suggested Citation

  • Masoud Shirazi Abdolrasoul Ghasemi Teymour Mohammadi Jurica Šimurina Ali Faridzad Atefeh Taklif, 2020. "A Dynamic Network Comparison Analysis of Crude Oil Trade: Evidence from Eastern Europe and Eurasia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 95-119, May.
    • Handle: RePEc:zag:zirebs:v:23:y:2020:i:1:p:95-119
    DOI: 10.2478/zireb-2020-0007
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    More about this item

    Keywords

    Crude Oil Trade; Dynamic Network Connectedness Measure; Gravity Model; Nonlinear Panel ARDL Model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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