Effects of Demand and Supply Shocks in Oil Price, on Returns of Oil Related Industries
Author: Sumair Ahmad

This study focuses on investors’ perspective for designing strategies for their investment, especially in sector of oil related industries. This study emphases on how different related industries response to different types of shocks in oil price? These shocks may be from demand or supply side at global and domestic level while five industries were selected based on their direct connection with oil price. On the basis of connection between variable, SVAR model was one of most apt model. Monthly data from January 2005 to February 2017 is used in order to capture realistic results. The outcomes of this study represent that the selected industries have significant response to the global supply shock. However, the industries showed relatively less response to the global demand shocks in oil prices but significant response as opposed to domestic demand shocks. It is recommended in the study that investors can have more benefits from expected oil supply shocks Supervisor:- Dr. Saud Ahmed Khan

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Keywords : Demand and supply shocks, Impulse Response, Industries’ returns, SVAR
Supervisor: Saud Ahmed Khan

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