Volume 30, Issue 3, September 2020, Pages 765–775
Chaabene Gessabi1, Hamid Bachouche2, Zied Akrout3, and Nassira Mecieb4
1 University of Msila, Algeria
2 Assistant Professor in Economics Sciences, Business Administration Department, College of Business, King Khalid University, Abha, Kingdom of Saudi Arabia
3 Associate Professor in Economics Sciences, Business Administration Department, College of Business, King Khalid University, Abha, Kingdom of Saudi Arabia
4 University of Mostaganem, Algeria
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study aims to know the extent of the effects of the US dollar exchange rate on world oil prices, this was done through a standard study in which we used the auto regression methodology for the distributed time gaps applied to annual time series the exchange rate of the us dollar against the euro and changes in oil prices from 2000 to 2018.The study found a long-term inverse relationship between the US dollar exchange rate and oil prices, Which means that oil prices in international markets are affected in the long run by exchange rate changes, and since this relationship is inverse and significant, in the long run, oil prices rise in international markets during periods in which the value of the US dollar falls against the euro, and for the short run, there is an inverse and non-significant relationship between the variables.
Author Keywords: Oil prices, US dollar, exchange rates, ARDL model.
Chaabene Gessabi1, Hamid Bachouche2, Zied Akrout3, and Nassira Mecieb4
1 University of Msila, Algeria
2 Assistant Professor in Economics Sciences, Business Administration Department, College of Business, King Khalid University, Abha, Kingdom of Saudi Arabia
3 Associate Professor in Economics Sciences, Business Administration Department, College of Business, King Khalid University, Abha, Kingdom of Saudi Arabia
4 University of Mostaganem, Algeria
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study aims to know the extent of the effects of the US dollar exchange rate on world oil prices, this was done through a standard study in which we used the auto regression methodology for the distributed time gaps applied to annual time series the exchange rate of the us dollar against the euro and changes in oil prices from 2000 to 2018.The study found a long-term inverse relationship between the US dollar exchange rate and oil prices, Which means that oil prices in international markets are affected in the long run by exchange rate changes, and since this relationship is inverse and significant, in the long run, oil prices rise in international markets during periods in which the value of the US dollar falls against the euro, and for the short run, there is an inverse and non-significant relationship between the variables.
Author Keywords: Oil prices, US dollar, exchange rates, ARDL model.
How to Cite this Article
Chaabene Gessabi, Hamid Bachouche, Zied Akrout, and Nassira Mecieb, “The impact of US dollar exchange rates on oil prices in international markets, Standard study using Autoregressive-Distributed Lag model with distributed time gaps (ADRL) During 2000-2018,” International Journal of Innovation and Applied Studies, vol. 30, no. 3, pp. 765–775, September 2020.
