A Survey of Literature on the Interlinkage between Petroleum Prices and Equity Markets

Miramir Bagirov and Cesario Mateus ()
Additional contact information
Miramir Bagirov: School of Accounting, Finance and Economics, University of Greenwich, London SE10 9LS, UK
Cesario Mateus: Business School, Aalborg University, Fibigerstræde 11-73, 9220 Aalborg, Denmark

JRFM, 2024, vol. 17, issue 1, 1-48

Abstract: The multifaceted interrelationship between petroleum prices and equity markets has been a subject of immense interest. The current paper offers an extensive review of a plethora of empirical studies in this strand of literature. By scrutinising over 190 papers published from 1983 to 2023, our survey reveals various research themes and points to diverse findings that are sector- and country-specific and contingent on employed methodologies, data frequencies, and time horizons. More precisely, petroleum price changes and shocks exert direct or indirect effects dictated by the level of petroleum dependency across sectors and the country’s position as a net petroleum exporter or importer. The interlinkages tend to display a time-varying nature and sensitivity to major market events. In addition, volatility is not solely spilled from petroleum to equity markets; it is also observed to transmit in the reverse direction. The importance of incorporating asymmetries is documented. Lastly, the summarised findings can serve as the basis for further research and reveal valuable insights to market participants.

Keywords: petroleum prices; aggregate equity market returns; equity sector returns; petroleum price shocks; volatility transmission; petroleum exporters; petroleum importers (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1911-8074/17/1/40/pdf (application/pdf)
https://www.mdpi.com/1911-8074/17/1/40/ (text/html)

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:gam:jjrfmx:v:17:y:2024:i:1:p:40-:d:1323991

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().