Impact of oil price fluctuations on food prices: fresh insight from asymmetric ARDL approach of co-integration

Umair Kashif, Chen Hong, Snovia Naseem, Muhammad Waqar Akram and Muhammad Meo ()

International Journal of Global Energy Issues, 2022, vol. 44, issue 2/3, 264-280

Abstract: The current study analyses the asymmetric effects of oil prices on food prices in Pakistan from 1977 to 2017. ADF, PP, and KPSS root unit tests were used to substantiate data stationarity, while nonlinear autoregressive distributed lags (NARDL) were utilised for asymmetry testing. The NARDL results confirm co-integration and show a strong positive impression of oil price rise to food prices in the long-run. In the meantime, a decline in oil prices relationship with food prices is absent and inconsequential. Additionally, positive changes in oil prices have a considerable role in food prices only in the short-run. Due to the absence of the significant influence of oil prices reduction at food prices in the short-run and long-run, market strength could be essential for forming Pakistan's food value behaviour.

Keywords: oil price; food price behaviour; exchange rates; asymmetry; NARDL. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=121389 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijgeni:v:44:y:2022:i:2/3:p:264-280

Access Statistics for this article

More articles in International Journal of Global Energy Issues from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().