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Global Oil Prices, Oil Industry And Equity Returns: Russian Experience

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  • Ramaprasad Bhar
  • Biljana Nikolova

Abstract

The purpose of this paper is to promote a greater understanding of the implications of oil price changes on the equity investment climate in Russia. A dynamic bivariate exponential general autoregressive conditional heteroscedastic (EGARCH) analysis shows that global oil price returns have significant impact on Russian equity returns and volatility. At the same time, a dynamic correlation analysis highlights Russia's importance in the international geopolitical scene and its positioning as a reliable supplier of oil during times of turmoil in the Middle East. There are a number of challenges, however, that threaten to slow down the performance of the oil industry in Russia and compromise the country's future economic growth and stock market performance.

Suggested Citation

  • Ramaprasad Bhar & Biljana Nikolova, 2010. "Global Oil Prices, Oil Industry And Equity Returns: Russian Experience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 169-186, May.
    • Handle: RePEc:bla:scotjp:v:57:y:2010:i:2:p:169-186
    DOI: 10.1111/j.1467-9485.2010.00512.x
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    References listed on IDEAS

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