THE INTERACTION BETWEEN STOCK PRICES AND COMMODITY PRICES: EASTERN EUROPE AND CENTRAL ASIA CASE
Mustafa Ildırar,Erhan Iscan
The sharp increase in commodity prices since 2000s has important effects on
many economic variables. Especially the upward trend in commodity prices had
substantial effects on stock prices. The literature has continuing and growing
interest to the dynamics of commodity price and their significant impact on
economic and financial developments. There is growing evidence that commodity
prices, stock prices moved together, and that the correlations between them have
increased. Many studies investigated the interaction between stock prices and real
and commodity prices and find strong interaction for developed countries.
However, the effect of the commodity prices on stock markets in relatively less
investigated for ECA countries. The purpose of this study is to investigate the
long-run relationship between commodity prices and stock prices in ECA
countries can by using a panel cointegration test.
Stock Prices, Commodity Prices, ECA Countries
Avalos, F. (2011) “Commodity prices: Microeconomic drivers and emerging risks for Latin America”, Papers and Proceedings of the VI International Conference,