The Influence of Oil Price Fluctuations on Stock Market of Developing Economies: A Focus on Nigeria

Chuke Nwude, Damilola Felix Eluyela, Elias Igwebuike Agbo and Francis O Iyoha
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Chuke Nwude: Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Nigeria,
Damilola Felix Eluyela: Department of Accounting and Finance, Landmark University, Nigeria,
Elias Igwebuike Agbo: Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Nigeria,
Francis O Iyoha: Department of Accounting, College of Business and Social Sciences, Covenant University, Nigeria

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 3, 100-109

Abstract: The inconclusiveness of findings from various studies on Nigeria on the effect of crude oil price fluctuation on the stock market has led to an argument in literature, thus necessitating further exploration of the subject. This study examines the effect of variations in the price of crude oil on selected stock market performance variables in Nigeria using monthly frequency data covering January 1997 to December 2016. Variance decomposition, impulse response analysis, and VAR estimations were employed for the study. The results reveal that oil price variations are slowly transmitted in some stock market performance variables. The findings indicate that the effect of crude oil price fluctuations in the Nigerian stock market is greatly minimized and does not sufficiently account for market activities.

Keywords: Emerging Economy; Nigeria; Oil Price Shocks; Stock Market; VAR. (search for similar items in EconPapers)
JEL-codes: C25 F4 Q47 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-03-13

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