Oil market shocks and financial instability in Asian countries

This paper examines the relationship between oil market shocks and financial instability in Asian countries using a Structural Vector Autoregression (SVAR) following Kilian and Park’s (2009) methodology. Instability in the Asian financial markets is measured by the Financial Stress Index (FSI). Base...

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Main Author: Dagher, Leila (author)
Other Authors: Hasanov, Fakhri J. (author)
Format: article
Published: 2023
Online Access:http://hdl.handle.net/10725/17921
https://doi.org/10.1016/j.iref.2022.11.008
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S1059056022002763
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author Dagher, Leila
author2 Hasanov, Fakhri J.
author2_role author
author_facet Dagher, Leila
Hasanov, Fakhri J.
author_role author
dc.creator.none.fl_str_mv Dagher, Leila
Hasanov, Fakhri J.
dc.date.none.fl_str_mv 2023
2023-03
2026-04-14T11:56:15Z
2026-04-14T11:56:15Z
dc.identifier.none.fl_str_mv 1059-0560
http://hdl.handle.net/10725/17921
https://doi.org/10.1016/j.iref.2022.11.008
Dagher, L., & Hasanov, F. J. (2023). Oil market shocks and financial instability in Asian countries. International Review of Economics & Finance, 84, 182-195.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S1059056022002763
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv International Review of Economics & Finance
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Oil market shocks and financial instability in Asian countries
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This paper examines the relationship between oil market shocks and financial instability in Asian countries using a Structural Vector Autoregression (SVAR) following Kilian and Park’s (2009) methodology. Instability in the Asian financial markets is measured by the Financial Stress Index (FSI). Based on impulse response functions, the findings confirm that the source of an oil price shock (supply side or demand side) is extremely important to financial markets. When the oil price increases as a result of oil-specific demand shocks, the financial markets experience less stress. However, when the oil price increases as a result of oil-specific supply shocks, the financial markets experience increased stress. The findings of the study should be useful for international and domestic investors for portfolio diversification and other investment-production purposes, as well as for financial stability regulators, such as central bankers and other monetary authorities.
eu_rights_str_mv openAccess
format article
id LAURepo_778067f8bf0e720b27114874a3b00539
identifier_str_mv 1059-0560
Dagher, L., & Hasanov, F. J. (2023). Oil market shocks and financial instability in Asian countries. International Review of Economics & Finance, 84, 182-195.
language_invalid_str_mv en
network_acronym_str LAURepo
network_name_str Lebanese American University repository
oai_identifier_str oai:laur.lau.edu.lb:10725/17921
publishDate 2023
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spelling Oil market shocks and financial instability in Asian countriesDagher, LeilaHasanov, Fakhri J.This paper examines the relationship between oil market shocks and financial instability in Asian countries using a Structural Vector Autoregression (SVAR) following Kilian and Park’s (2009) methodology. Instability in the Asian financial markets is measured by the Financial Stress Index (FSI). Based on impulse response functions, the findings confirm that the source of an oil price shock (supply side or demand side) is extremely important to financial markets. When the oil price increases as a result of oil-specific demand shocks, the financial markets experience less stress. However, when the oil price increases as a result of oil-specific supply shocks, the financial markets experience increased stress. The findings of the study should be useful for international and domestic investors for portfolio diversification and other investment-production purposes, as well as for financial stability regulators, such as central bankers and other monetary authorities.Published2026-04-14T11:56:15Z2026-04-14T11:56:15Z20232023-03Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1059-0560http://hdl.handle.net/10725/17921https://doi.org/10.1016/j.iref.2022.11.008Dagher, L., & Hasanov, F. J. (2023). Oil market shocks and financial instability in Asian countries. International Review of Economics & Finance, 84, 182-195.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.sciencedirect.com/science/article/pii/S1059056022002763enInternational Review of Economics & Financeinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/179212026-04-14T11:56:15Z
spellingShingle Oil market shocks and financial instability in Asian countries
Dagher, Leila
status_str publishedVersion
title Oil market shocks and financial instability in Asian countries
title_full Oil market shocks and financial instability in Asian countries
title_fullStr Oil market shocks and financial instability in Asian countries
title_full_unstemmed Oil market shocks and financial instability in Asian countries
title_short Oil market shocks and financial instability in Asian countries
title_sort Oil market shocks and financial instability in Asian countries
url http://hdl.handle.net/10725/17921
https://doi.org/10.1016/j.iref.2022.11.008
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/pii/S1059056022002763