Oil price in Saudi Arabia

This study examines the impact of control of corruption and the effectiveness of governance on the economic growth in Saudi Arabia using the latest cointegration approach of Pesaran et al. (2001) and Kripfganz and Schneider (2019). We utilize unit root and cointegration tests using a maximum available sample from 1996 to 2019. The effect of control of corruption is found insignificant on economic growth, and a positive effect of governance is found in the long-run.

6p mynguyenha 21-07-2021 18 2   Download

This present research probes the role of Oil Price (OP) on the 22 categories of manufacturing industries of Saudi Arabia and the growth of total industries during 1990-2018 in the nonlinear settings. To serve the purpose, we utilize the unit root test and nonlinear cointegration test of Shin et al. (2014) based on modified bound statistics of Kripfganz and Schneider (2019).

7p caygaocaolon11 18-04-2021 12 1   Download

The oil revenue constitutes 50% of the GDP of Saudi Arabia approximately and indirectly governs the Public spending Avenues (PSA). The study finds out the symmetry in sensitivity and trend of Oil prices (OP), GDP, and Public Spending Avenues (PSA) and the impact of volatility of oil prices on the GDP, and PSA. The analysis is based on the Chain based Index (CBI) and Fixed Based Index (FBI) numbers to get the sensitivity and trend movement of the variables.

6p caygaocaolon11 18-04-2021 19 1   Download

This research probes the role of economic growth, trade openness, and oil price on government consumption growth to verify the type of cyclicality in Saudi Arabia from 1971 to 2018. The cointegration test of Pesaran (2001) is utilized to test the cyclicality hypothesis with augmented critical bound statistics developed by Kripfganz and Schneider (2019). We corroborate the long and short-run relationships in the fiscal model of Saudi Arabia. Further, procyclicality is proved in the long run and countercyclicality is corroborated in the short run with a 1-year lag effect.

5p caygaocaolon11 18-04-2021 8 1   Download

Oil Price (OP) and revenue play a significant contribution to the income of oil producers. Saudi income is majorly sourced from the oil sector. Therefore, it is very important to see the influence of OP on income. Particularly, testing asymmetry is necessary to see whether increasing OP has the same effect on income or not as of decreasing OP. This present research cares about this issue using nonlinear cointegration techniques. We found the symmetrical effect of OP on income in the long-run and asymmetrical effects in the short-run.

5p nguaconbaynhay10 22-02-2021 6 2   Download

The export of petroleum products is the base avenue and constitutes a major ingredient of the Saudi economy. It is evident that the oil prices gradually decrease year by year governed by some international uncontrollable factors. The study is based on the secondary data obtained from the website of the Saudi Arabian Monetary Authority (SAMA).

8p nguaconbaynhay10 22-02-2021 16 2   Download

This paper investigates the volatility transmission effect and conditional correlations among crude oil, stock market and sector stock indexes in Saudi Arabia. Using daily data from January 3, 2009 to March 21, 2012 and VAR-BEKK specification, we find significant volatility transmission between oil prices and Saudi stock market. Furthermore, our findings show that sector stock returns significantly react to oil prices changes. In addition, except telecom sector, the results show the presence of volatility transmission between stock market and sector stock market returns.

17p 035522894 13-04-2020 49 3   Download

This paper aims at examining the impact of oil price on GCC countries’ stock market returns. We apply wavelet analysis model for examining the relationship between oil and stock market returns. Using monthly data from May 2005 to December 2011, our results suggest that not all stock market in GCC region have a positive relationship with oil price as some have, instead, negative relationship with oil price. Oil price has a negative relationship with Bahrain, Saudi Arabia and United Arab Emirates.

11p cothumenhmong4 24-03-2020 45 4   Download

Time series analysis is applied to monthly data from October 2008 to October 2013. Application of Bai-Perron test confirms the existence of at least one structural break in both stock prices and oil prices data. Since both data series are I(1), conventional Johansen test and Gregory-Hansen test that takes into consideration one endogenous break are applied to examine if oil prices and stock prices are related. Johansen test rules out cointegration between oil prices and stock prices. However, Gregory-Hansen test detects the presence of long-run association in the level shift model.

14p cothumenhmong4 24-03-2020 23 3   Download

Using the panel-data approach of Kónya (2006), which is based on SUR systems and Wald tests with country-specific bootstrap critical values, and two different (weekly and monthly) datasets covering respectively the periods from 7 June 2005 to 21October 2008, and from January 1996 to December 2007, we show strong statistical evidence that the causal relationship is consistently bi-directional for Saudi Arabia. In the other GCC countries, stock market price changes do not Granger cause oil price changes, whereas oil price shocks Granger cause stock price changes.

15p quaivattim 04-12-2012 57 2   Download