Oil Price and Stock Market: Empirical Evidence from Nigeria

  • Olayinka Olufisayo Akinlo

Abstract

This paper examined the relationship between changes in oil prices and stock market growth over the period 1981-2011 using vector error correction modeling approach. The results suggest a long run relationship between oil price, exchange rate and stock market growth. A unidirectional causality runs from oil price change to stock market development. The impulse response function shows that oil price has a temporary positive impact on stock market. The VDC shows that stock market development to be very much dependent on shock on oil price change.

Keywords: oil price, stock market, VECM, Nigeria

Published
2014-06-01
How to Cite
Akinlo, O. O. (2014). Oil Price and Stock Market: Empirical Evidence from Nigeria. European Journal of Sustainable Development, 3(2), 33. https://doi.org/10.14207/ejsd.2014.v3n2p33
Section
Articles