How is China's coke price related with the world oil price? The role of extreme movements

© 2016.This paper focuses on the relationship between the world oil price and China's coke price, particularly with respect to extreme movements in the world oil price. Based on a daily sample from 2009 to 2015 and the ARJI-GARCH models and copulas, our empirical results show that China's...

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Main Authors: Guo, Y., Wen, X., Wu, Y., Guo, Xiumei
Format: Journal Article
Published: Elsevier BV * North-Holland 2016
Online Access:http://hdl.handle.net/20.500.11937/58492
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author Guo, Y.
Wen, X.
Wu, Y.
Guo, Xiumei
author_facet Guo, Y.
Wen, X.
Wu, Y.
Guo, Xiumei
author_sort Guo, Y.
building Curtin Institutional Repository
collection Online Access
description © 2016.This paper focuses on the relationship between the world oil price and China's coke price, particularly with respect to extreme movements in the world oil price. Based on a daily sample from 2009 to 2015 and the ARJI-GARCH models and copulas, our empirical results show that China's coke price and the world oil price are characterized by GARCH volatility and jump behaviors. Specifically, negative oil price shocks lead to falls in China's coke returns on the following day while positive oil prices have no significant effects. In addition, current coke returns positively respond to the very recent oil price jump intensity, and a time-varying and volatile lower tail dependence is found between the world oil price and China's coke price. Our results are expected to have implications for coke producers and users and policy makers.
first_indexed 2025-11-14T10:13:10Z
format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T10:13:10Z
publishDate 2016
publisher Elsevier BV * North-Holland
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-584922017-11-24T05:46:58Z How is China's coke price related with the world oil price? The role of extreme movements Guo, Y. Wen, X. Wu, Y. Guo, Xiumei © 2016.This paper focuses on the relationship between the world oil price and China's coke price, particularly with respect to extreme movements in the world oil price. Based on a daily sample from 2009 to 2015 and the ARJI-GARCH models and copulas, our empirical results show that China's coke price and the world oil price are characterized by GARCH volatility and jump behaviors. Specifically, negative oil price shocks lead to falls in China's coke returns on the following day while positive oil prices have no significant effects. In addition, current coke returns positively respond to the very recent oil price jump intensity, and a time-varying and volatile lower tail dependence is found between the world oil price and China's coke price. Our results are expected to have implications for coke producers and users and policy makers. 2016 Journal Article http://hdl.handle.net/20.500.11937/58492 10.1016/j.econmod.2016.05.018 Elsevier BV * North-Holland restricted
spellingShingle Guo, Y.
Wen, X.
Wu, Y.
Guo, Xiumei
How is China's coke price related with the world oil price? The role of extreme movements
title How is China's coke price related with the world oil price? The role of extreme movements
title_full How is China's coke price related with the world oil price? The role of extreme movements
title_fullStr How is China's coke price related with the world oil price? The role of extreme movements
title_full_unstemmed How is China's coke price related with the world oil price? The role of extreme movements
title_short How is China's coke price related with the world oil price? The role of extreme movements
title_sort how is china's coke price related with the world oil price? the role of extreme movements
url http://hdl.handle.net/20.500.11937/58492