SUSTAINABILITY OF EXCHANGE RATES AND CRUDE OIL PRICES CONNECTION WITH COVID-19: AN INVESTIGATION FOR BRICS
The study has investigated relationship between crude oil prices and exchange rates of BRICS region from 1999-2020. A comparison has been drawn in normal and COVID-19 period for analysing the cause-and-effect bivariate relationship in two different periods. The COVID-19 crisis period has been an...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Academica Brâncuşi
2021-10-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | https://www.utgjiu.ro/revista/ec/pdf/2021-05/02_Bhatia.pdf |
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| Summary: | The study has investigated relationship between crude oil prices and exchange rates of BRICS region from
1999-2020. A comparison has been drawn in normal and COVID-19 period for analysing the cause-and-effect bivariate
relationship in two different periods. The COVID-19 crisis period has been analysed along with normal period to explore
differentiation between the two periods. OLS and DCC-GARCH model has been employed to empirically test the causal
linkages from crude oil prices to exchange rates of BRICS group of countries. There existed a long run volatility from
crude oil prices to exchange rates of BRICS countries both in normal and COVID times. The relationship may have been
impacted temporarily during pandemic and crisis period. However, the causal linkage has been strong and results in both
periods have been found in line with the existing literature baring minor exceptions. The policy makers and global
investors may benefit from the results of the present study. |
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| ISSN: | 1844-7007 2344-3685 |