IMPACT OF COVID-19 PANDEMIC ON OIL PRICES IN SOUTH ASIA: PANEL DATA ANALYSIS

Authors

  • Aziz Ahmad Khan Department of Economics, Government SE Graduate College Bahawalpur Pakistan
  •  Sara Noreen Department of Economics, Government Sadiq College Women University, Bahawalpur Pakistan
  • Mohammad Farooq Department of Economics, Government SE Graduate College Bahawalpur Pakistan

DOI:

https://doi.org/10.52567/pjsr.v4i2.494

Abstract

The COVID-19 pandemic has exerted an unprecedented impact on the oil prices across the globe and it is inevitable to capture the variations in oil prices caused by the COVID-19 pandemic. The current study objects to explore the effect of COVID-19 on oil prices in South Asian countries (Pakistan, India, Sri Lanka, and Bangladesh) by applying the Fixed-Effect Model (FEM) to the panel data from January 2019 to June 2021. The study has applied the Levin-Lin Chu test, Hardri LM test, and Im-Pesaran-Shin test to check the stationary properties of the panel data. The study has also applied the diagnostic tests i.e. White test, the Breush-Pagan test, the Breush-Pagan LM test, the Durban-Watson test, and the Hausman test. The results of all diagnostic tests authenticate the estimates of the Fixed-Effect Model (FEM). Findings of the study exhibit that the COVID-19 pandemic, natural gas production, and oil demand exert a negative impact on the oil price, whereas, exchange rate and oil supply have a positive impact on oil prices in South Asian countries during the stipulated period. The study has suggested that the authorities of South Asian authorities should devise such type of policies that could defeat the COVID-19 pandemic to cope with the hike in oil prices.

Keywords: COVID-19 pandemic; Oil Prices; Fixed-Effect-Model; South Asia.

Author Biographies

  • Aziz Ahmad Khan, Department of Economics, Government SE Graduate College Bahawalpur Pakistan

    Lecturer

     

  •  Sara Noreen, Department of Economics, Government Sadiq College Women University, Bahawalpur Pakistan

    Assistant Professor

  • Mohammad Farooq, Department of Economics, Government SE Graduate College Bahawalpur Pakistan

    Research Student

     

     

Additional Files

Published

2022-06-30

Issue

Vol. 4 No. 2 (2022): Pakistan Journal of Social Research PJSR

Section

Research Article

License

Copyright (c) 2022 Aziz Ahmad Khan,  Sara Noreen, Mohammad Farooq

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

[1]
“IMPACT OF COVID-19 PANDEMIC ON OIL PRICES IN SOUTH ASIA: PANEL DATA ANALYSIS ”, Pak. J, Soc. Sci., vol. 4, no. 2, pp. 445–457, Jun. 2022, doi: 10.52567/pjsr.v4i2.494.