Journal Title

Review of Economics & Finance

Publication Date

8-2017

Abstract

This paper investigates the daily volatility spillovers between crude oil prices and a select group of agricultural staples. Empirical findings confirm that the price series under study exhibit nonlinear dependencies which are inconsistent with chaotic pattern. The Johansen-Juselius cointegration test rules out long-run equilibrium relationships between the crude oil prices and the commodities under study. The dynamic conditional correlations (DCC) suggest that the association between agricultural commodities and the crude oil varies over time. The spectral and cross spectral analyses confirm that volatilities in crude oil prices are associated with volatilities in the agricultural products in the sample. Bivariate EGARCH model and the Granger causality tests confirm this relationship.

Author Supplied Keywords

Crude oil prices, Volatility, EGARCH model, Spectral analysis, Cross spectral

Subjects

Economics; Petroleum products

Publication Information

© Review of Economics & Finance, published by Better Advances Press

Archived version is the final published version.

Peer-Reviewed

Yes

Document Type

Journal Article

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