World Oil Fluctuation and Vietnamese Stock Market Index

Khanh Vo Thi Van^1,

¹Department of Business Administration, Academy of Finance, No. 58 Le Van Hien Road, Duc Thang Ward, Bac Tu Liem District, Hanoi, 100000, Vietnam

Cite this paper:
Khanh Vo Thi Van. World Oil Fluctuation and Vietnamese Stock Market Index. International Journal of Econometrics and Financial Management. 2020; 8(1):30-36. doi: 10.12691/ijefm-8-1-5

Abstract

The purpose of this paper is to investigate the effects of world oil price on Vietnamese stock market index. Using an Autoregressive Distributed Lag model (ARDL model) on the monthly data during the period over Jul 2000- Jun 2019, collected from Stock markets and Finance News and Vndirect joint stock company news. Evidence from the study shows that world oil price does not only impact on Vietnamese stock market index in short run but world oil price on Vietnamese stock market index also have a long-run equilibrium relationship. In short run, world oil price shows sometimes a negative, sometimes a positive influence on Vietnamese stock market index. While in long run, the nexus of world oil price on Vietnamese stock market index is steadily positive.

Keywords:
world oil price Vietnamese stock market index Autoregressive Distributed Lag Model

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