How Oil Prices Impact the Taiwanese Economy: Evidence from the stock market

Willem Thorbecke

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Oil prices are volatile. How do oil prices affect Taiwanese industries? This paper investigates how oil price increases driven by shocks to global aggregate demand and to oil supply affect Taiwanese sectoral stock returns. It uses Hamilton’s (2014) approach to divide oil price changes into portions driven by demand and supply factors. The results indicate that the semiconductor sector and Taiwan Semiconductor Manufacturing Company (TSMC) are harmed by oil price increases. Since oil prices are often high and quick to change, these findings imply that TSMC should expedite its goal of switching from depending on fossil fuels to utilizing renewable energy.

Pages: 21 pages
Date: 2024-09
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/24e071.pdf (application/pdf)

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:eti:dpaper:24071

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().