Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market
This paper investigates two important things; the role of crude oil prices in explaining the Egyptian stock market return, and what factors derive from Egyptian crude oil prices. Using 6 log difference time series variables this paper finds that multiple regression is an inappropriate model to test...
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| Format: | Article |
| Language: | English |
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EconJournals
2024-01-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/15198 |
| _version_ | 1797353167787130880 |
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| author | Khaled Bataineh |
| author_facet | Khaled Bataineh |
| author_sort | Khaled Bataineh |
| collection | DOAJ |
| description |
This paper investigates two important things; the role of crude oil prices in explaining the Egyptian stock market return, and what factors derive from Egyptian crude oil prices. Using 6 log difference time series variables this paper finds that multiple regression is an inappropriate model to test the two goals mentioned above. On the other hand, using Vector Autoregression (VAR Model) is much more profitable in achieving the paper’s goals. Although the VAR model results are more reliable, crude oil price fails to explain the Egyptian stock market return because Egypt is not a big oil exporter. Furthermore, the VAR model shows that the Energy sector index, stock world index (S&P 500 the proxy), stock exchange index, exchange rate, and the global financial crisis are all factors that derive and determine the Egyptian crude oil price.
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| first_indexed | 2024-03-08T13:27:15Z |
| format | Article |
| id | doaj.art-1cb4a6c4d72a4210908fbe568864d5d4 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-03-08T13:27:15Z |
| publishDate | 2024-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-1cb4a6c4d72a4210908fbe568864d5d42024-01-17T14:42:42ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532024-01-0114110.32479/ijeep.15198Crude Oil Prices and the Egyptian Economy Evidence from the Stock MarketKhaled Bataineh0Faculty of Business, Yarmouk University, Jordan This paper investigates two important things; the role of crude oil prices in explaining the Egyptian stock market return, and what factors derive from Egyptian crude oil prices. Using 6 log difference time series variables this paper finds that multiple regression is an inappropriate model to test the two goals mentioned above. On the other hand, using Vector Autoregression (VAR Model) is much more profitable in achieving the paper’s goals. Although the VAR model results are more reliable, crude oil price fails to explain the Egyptian stock market return because Egypt is not a big oil exporter. Furthermore, the VAR model shows that the Energy sector index, stock world index (S&P 500 the proxy), stock exchange index, exchange rate, and the global financial crisis are all factors that derive and determine the Egyptian crude oil price. https://econjournals.com/index.php/ijeep/article/view/15198Crude Oil Price, Vector Autoregression (VAR Model), Egyptian Stock Market Return, Oil Exporter, Energy Sector Index |
| spellingShingle | Khaled Bataineh Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market International Journal of Energy Economics and Policy Crude Oil Price, Vector Autoregression (VAR Model), Egyptian Stock Market Return, Oil Exporter, Energy Sector Index |
| title | Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market |
| title_full | Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market |
| title_fullStr | Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market |
| title_full_unstemmed | Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market |
| title_short | Crude Oil Prices and the Egyptian Economy Evidence from the Stock Market |
| title_sort | crude oil prices and the egyptian economy evidence from the stock market |
| topic | Crude Oil Price, Vector Autoregression (VAR Model), Egyptian Stock Market Return, Oil Exporter, Energy Sector Index |
| url | https://econjournals.com/index.php/ijeep/article/view/15198 |
| work_keys_str_mv | AT khaledbataineh crudeoilpricesandtheegyptianeconomyevidencefromthestockmarket |