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The Impact of Oil Prices on East and Southeast Asian Economies: Evidence from financial markets

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  • Willem THORBECKE

Abstract

Oil prices have been volatile. To investigate how oil price swings affect Asian economies, this paper examines how they affect industry and aggregate stock returns. Economic theory implies that there is a strong link between a sector's stock return and its economic activity. Evidence presented here indicates that sectors such as electricity, airlines, and industrial transportation are helped by oil price falls, and that sectors such as oil and gas production and exploration are harmed. The findings also reveal that many industries within each country are impacted by oil prices. The paper concludes by offering several suggestions to help Asian economies weather the effects of oil price changes.

Suggested Citation

  • Willem THORBECKE, 2018. "The Impact of Oil Prices on East and Southeast Asian Economies: Evidence from financial markets," Discussion papers 18043, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:18043
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    File URL: https://www.rieti.go.jp/jp/publications/dp/18e043.pdf
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    References listed on IDEAS

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    Cited by:

    1. Vietha Devia SS, 2019. "Analysis of Crude Oil Price and Exchange Rate Volatility on Macroeconomic Variables (Case Study of Indonesia as Emerging Economic Country)," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(5), pages 257-271.

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