The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan
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Keywords:Oil Price, KASE Stock Market Closing Prices, Real Exchange Rate
AbstractIn this study, the relationship between KASE stock market closing prices and oil prices is analyzed using ADF and Zivot-Andrews' (1992) unit root tests and monthly data for the period of 2016-2021. First, the variables are tested for causality. Results show that there is a causal relationship between the real exchange rate and closing prices and between oil prices and the real exchange rate. The short-term effects of the variables are investigated using the VAR method. Results show that Brent crude oil prices have a positive effect on KASE closing prices, while the real exchange rate has a negative effect. In conclusion, changes in oil prices affect the formation of stock prices.
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How to Cite
Kelesbayev, D., Myrzabekkyzy, K., Bolganbayev, A., & Baimaganbetov, S. (2022). The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan. International Journal of Energy Economics and Policy, 12(1), 163–168. https://doi.org/10.32479/ijeep.11880