Relationships Among Strategic Commodities and with Financial Variables: A New Look

14 Pages Posted: 16 Jun 2009

See all articles by Shawkat M. Hammoudeh

Shawkat M. Hammoudeh

Montpellier Business School; Drexel University - Lebow College of Business

Ramazan Sari

Middle East Technical University (METU)

Bradley T. Ewing

Baylor University - Department of Economics

Abstract

We examine the comovements among the prices of four strategic commodities that have long, adequate daily series: oil, gold, silver, and copper as a group. We also explore their causal relationships with two commodity-relevant macrofinancial variables: interest and exchange rates as an expanded group to shed some light on the prediction behaviors of those individual commodity prices relative to the selected financial variables. In the expanded group, the selected interest rate can provide a transmission link between commodity prices and the dollar exchange rate. The results and their policy implications are discussed at length.

JEL Classification: C51, E27, Q43

Suggested Citation

Hammoudeh, Shawkat M. and Sari, Ramazan and Ewing, Bradley T., Relationships Among Strategic Commodities and with Financial Variables: A New Look. Contemporary Economic Policy, Vol. 27, No. 2, pp. 251-264, April 2009. Available at SSRN: https://ssrn.com/abstract=1393538 or http://dx.doi.org/10.1111/j.1465-7287.2008.00126.x

Shawkat M. Hammoudeh (Contact Author)

Montpellier Business School ( email )

2300 Avenue des Moulins
Montpellier, 34080
France

Drexel University - Lebow College of Business ( email )

3141 Chestnut Street
Philadelphia, PA 19104
United States
2158956673 (Phone)
2158956975 (Fax)

HOME PAGE: http://faculty.lebow.drexel.edu/HammoudehS/

Ramazan Sari

Middle East Technical University (METU)

Ankara, 06531
Turkey

Bradley T. Ewing

Baylor University - Department of Economics ( email )

P.O. Box 98003
Waco, TX 76798-8003
United States

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