Macro-financial transmission of global oil shocks to BRIC countries — International financial (uncertainty) conditions matter

Yildirim Z., Guloglu H.

ENERGY, cilt.306, ss.1-31, 2024 (SCI-Expanded)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 306
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1016/j.energy.2024.132297
  • Dergi Adı: ENERGY
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Applied Science & Technology Source, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.1-31
  • Anadolu Üniversitesi Adresli: Evet

Özet

A well-documented literature exists on the impact of global oil shocks on small open economies (SOEs). However, it still disregards the international financial (uncertainty) conditions. This study fills this gap by considering the conditions of global markets. We assess the macro-financial effects of global oil price shocks on oil-exporting and oil-importing emerging economies of BRIC by using the linear and non-linear SOE SVAR models. Documenting a novel amplification role of uncertain conditions, this study provides a clear message: international financial (uncertainty) conditions matter. We report three key results. First, negative oil price shocks tighten (loosen) financial conditions and induce a painful (beneficial) macroeconomic adjustment in BRIC oil exporters (importers). Second, two types of BRIC economies— oil-exporters and oil-importers— exhibit a divergent monetary policy response to common oil price shocks. Third, global financial (uncertainty) conditions amplify the macro-financial effects and make the monetary policy response to oil price shocks more aggressive.