JOURNAL OF EMERGING MARKETS FINANCE & TRADE | Energy is a critical input in modern economic systems. Its influence on various parts of economic performance has been widely investigated. Traditionally, energy prices, such as oil prices, are considered to be determined by supply and demand in international markets. Hamilton (2009), for example, suggests that increasing demand in emerging economies (e.g., China), failure to increase oil supply, and low price elasticity are the main reasons for price increases before 2008.
Author: Dayong Zhang, Southwestern University of Finance & Economics (China)
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