The nexus between oil prices and stock prices of oil, technology and transportation companies under multiple regime shifts

This study investigates the interaction between crude oil prices and the stock prices of oil, technology and transportation companies listed on U.S. stock exchanges, using weekly data covering the period from 2 January 1990 to 3 February 2015. Considering the importance of regime shifts or structural breaks in econometric analysis, this study employs the Carrion-i-Silvestre, Kim, and Perron unit root tests and the Maki cointegration tests, allowing for multiple breaks. Cointegration results confirm the existence of long-run equilibrium relationships between these stock indices, crude oil prices, short-term interest rates and the S&P 500. These findings indicate that crude oil prices and the other explanatory variables are long-run determinants of the stock prices of oil, technology and transportation firms. Stock prices of oil companies are positively affected by crude oil prices to a greater degree than that of technology and transportation stocks. Time-varying causality results show that West Texas Intermediate crude oil (WTI) is relatively more likely to affect the stock prices of these companies rather than to be affected by them. Evidently, it is confirmed that financial crises have a substantial ability to intensify the causal linkages between WTI and the stock indices of these companies

Causal interactions among tourism, foreign direct investment, domestic credits, and economic growth : evidence from selected Mediterranean countries

This study explores the nexus between tourism and economic growth in countries bordering the Mediterranean Sea while controlling for foreign direct investment and domestic credits as additional variables within a multivariate panel framework. Empirical evidence is based on annual data from 1995 to 2016 for a panel of 14 selected countries around the Mediterranean Sea region. The findings from the bootstrap panel cointegration test proposed by Westerlund (2007) confirm the long-run equilibrium relationship among the variables under inspection. Subsequently, the Panel Pooled Mean Group Autoregressive Distributed model (PMG-ARDL) estimations suggest positively significant relationships between tourism and economic growth both in short-term, and long-term periods. Thus, this study joins the group of studies that lend support to the tourism-led growth hypothesis. This result was further substantiated by the results of the Dumitrescu and Hurlin (2012) causality analysis, as feedback causality was observed between tourism and economic growth, while unidirectional causality was seen from foreign direct investment to economic growth. That is in support of the foreign direct investment-driven economic growth hypothesis. Strikingly, no causal relationship was observed between domestic credits and economic growth.info:eu-repo/semantics/publishedVersio