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An examination of the oil market at the outset of the Russia-Ukraine conflict

Author

Listed:
  • Faruk Balli

    (Massey University & Al-Farabi Kazakh National University)

  • Md Iftekhar Hassan Chowdhury

    (Independent Researcher)

  • Mabruk Billiah

    (Prince Mohammad Fahd University)

Abstract

The study explores the drift in the connectedness of 28 global energy markets during the Russian-Ukraine war that instigated one of the largest energy disruptions in history. We reveal a significant positive relationship between the energy dependency on Russia and the change in the return shock transmission. Though some developed markets with diversified energy sources signpost resistance post-invasion, most neighboring countries with higher energy dependency are exposed to amplified connectivity and vulnerability to shock transmission.

Suggested Citation

  • Faruk Balli & Md Iftekhar Hassan Chowdhury & Mabruk Billiah, 2025. "An examination of the oil market at the outset of the Russia-Ukraine conflict," Economics Bulletin, AccessEcon, vol. 45(1), pages 118-129.
    • Handle: RePEc:ebl:ecbull:eb-24-00343
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I1-P12.pdf
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    References listed on IDEAS

    as
    1. Diebold, Francis X. & Yılmaz, Kamil, 2014. "On the network topology of variance decompositions: Measuring the connectedness of financial firms," Journal of Econometrics, Elsevier, vol. 182(1), pages 119-134.
    2. Tosun, Onur Kemal & Eshraghi, Arman, 2022. "Corporate decisions in times of war: Evidence from the Russia-Ukraine conflict," Finance Research Letters, Elsevier, vol. 48(C).
    3. Rigobon, Roberto & Sack, Brian, 2005. "The effects of war risk on US financial markets," Journal of Banking & Finance, Elsevier, vol. 29(7), pages 1769-1789, July.
    4. Koop, Gary & Korobilis, Dimitris, 2014. "A new index of financial conditions," European Economic Review, Elsevier, vol. 71(C), pages 101-116.
    5. Faruk Balli & Mabruk Billah & Iftekhar Chowdhury, 2023. "Impact of the Russia–Ukraine war on hospitality equity markets," Tourism Economics, , vol. 29(8), pages 2206-2215, December.
    6. Antonakakis, Nikolaos & Gabauer, David & Gupta, Rangan & Plakandaras, Vasilios, 2018. "Dynamic connectedness of uncertainty across developed economies: A time-varying approach," Economics Letters, Elsevier, vol. 166(C), pages 63-75.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Russia-Ukraine war; Energy markets; Time-varying model; Connectedness index;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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    Access and download statistics

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