Relationship Between Crude Oil prices and Macro-economic Variables: Evidence from BRICS Countries
The article analyses the relationship between Crude oil Prices and Macro-economic variables in BRICS countries using Quarterly data from 31st March 1999 to 31st December 2019 and an Autoregressive Distributed lag model has been developed to study the long term relationship between Crude oil and Macro-economic variable. The study found out that the long term relationship exists between the variables. We have also identified that all the countries react differently to the fluctuations in Oil prices. But interestingly China and India share some commonalities in terms of reacting to the changes in Crude Oil prices. Additionaly we have also found that fluctuations in the Oil price effect Trade Openness in every country under study except Russia.
Keywords: Crude Oil prices, Macro-economic variables, ARDL, Bound test
JEL Classifications: C22, E40, E31, E50, Q43