Eurasian Review of Business and Finance, 2017, Volume 1, Issue 2, 17-37.

The Role of Oil & Stocks on Real Income Growth: Evidence from Major Stock Markets

Mustafa ELÇİN*

Customs and Tax Office, Famagusta, Northern Cyprus, Via Mersin 10, TURKEY. E-mail: 


This study investigates the long term relationship between output, oil price and stock market movements in the selected countries from different regions for comparison purposes such as Germany, Japan, Singapore, South Africa, Turkey, UK and USA. Using annual data from 1973 to 2010, empirical analysis shows that oil and stock markets are long term determinants in these countries. It is investigated that real income in these countries converges to its long term equilibrium level at reasonable levels through the channels of oil markets, stock markets, and business environment.

JEL Classification: G10, E10, O11.

Keywords: Oil prices; Stock markets; Output; Bounds Tests; ECM.

*Corresponding author.

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