Authors: Ali Rehan; Jelena Janjusevic
Addresses: Heriot-Watt University Dubai, P.O. Box 38103, Dubai Knowledge Park, Dubai, UAE ' Heriot-Watt University Dubai, P.O. Box 38103, Dubai Knowledge Park, Dubai, UAE
Abstract: As one of the key energy sources, oil is considered as the backbone of many industries and plays a major role in the economic environment of a country. With the crude oil market and its dynamics having a global impact, literature widely analysed and investigated the relation between equity markets and global oil markets in the context of volatility spillover, oil shocks impact, as well as level of synchronisation. This research thereby attempts to investigate the relation between the two markets, with focus on investigating whether this relation differs based on the oil importing/exporting nature of countries. The US market and Kingdom of Saudi Arabia are taken into consideration. The study is observing the correlation between the two markets through an ordinary least square multiple linear regression methodology. Further, the paper considers policy rate change of both countries as an independent variable.
Keywords: oil market; stock market; synchronisation; regression; sustainable development.
International Journal of Sustainable Society, 2021 Vol.13 No.4, pp.337 - 353
Accepted: 21 Oct 2021
Published online: 11 Mar 2022 *