Price causal relations between China and the world oil markets

K.C. Chen, Shaoling Chen and Lifan Wu

Global Finance Journal, 2009, vol. 20, issue 2, 107-118

Abstract: This paper examines China's influence on the volatility of crude oil prices in the international markets. Using data from 1997-2007, we find that China has little impact on the volatility of the world crude oil markets. On the contrary, our evidence shows that the crude oil price innovations in China are significantly driven by the OPEC and US markets, which account for 42-59% of the oil price variations in total. Our results indicate that although China emerges to be an important player, it has not yet correspondingly become an oil pricing power in the world oil markets.

Keywords: Cointegration; Crude; oil; Petroleum; markets (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1044-0283(09)00041-6
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:20:y:2009:i:2:p:107-118

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().