David Broadstock, a professor of the Southwestern University of Finance and Economics, was recently invited to give a lecture entitled “How Oil Shocks Influence Oil Related Stocks in the Asia Pacific Region”.

In his lecture, Professor Broadstock first showed that oil price has a significant impact on a country’s economic development. Based on a chart of oil price changes, he then demonstrated the variations of the oil price from the middle of last century to the beginning of this century, and explained the reasons for the changes. Finally, Professor Broadstock analyzed the influences of oil price changes on the economy of India, South Korea and Japan.

Professor Broadstock said that opinions on the relationship between the oil prices and oil--related stocks vary from people to people, and laid stress on the influences of financial shocks on economic structure and unstable oil price.

In addition, he thought that data should come from our daily life, then came to the conclusion that the impact of oil price was one of the most important factors in all energy combination. On the one hand, oil price is the additive in the market. On the other hand, oil price can impact economy via market risks.

In the end, he said that although the research results were based on much of data, there were still many problems that need to be solved.

Source: School of Economics