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32. The Effect of Exchange Rate and Oil Price on BIST Industrial Index: Cointegration and Causality Analysis
- Author:
- Serpil Sumer
- Publication Date:
- 05-2021
- Content Type:
- Journal Article
- Journal:
- Bilgi
- Institution:
- Sakarya University (SAU)
- Abstract:
- Industry is important for development and sustainability. Countries attach importance to industrialization in order to reduce their foreign dependency and gain competitiveness. It is expected that companies which competitiveness has increased with industrialization will have a positive effect on the national economy and financial markets. The raw materials used in the production process of the enterprises whose main activity is based on industry and the supply of these raw materials are among the issues that should be taken into consideration in industrial production. In this study, the relationship between oil price, exchange rate and Borsa Istanbul Industrial Production Index has been examined. In the study, Johansen co-integration and Granger causality tests were carried out using secondary data for the period January 2000 - September 2020. As a result of the Johansen co-integration test, it is concluded that there is a co-integration relationship between variables. As a result of Granger causality test; It was concluded that there is a bidirectional causality relationship between Borsa Istanbul industrial production index and exchange rate, and a racket effect causality relationship between Borsa Istanbul industrial production index and oil price. In addition, it is concluded that there is no causality relationship between exchange rate and oil price. The research of the relationship between the oil price and exchange rate of the industry, which has an important place in terms of economic growth and competition, is a feature that sets this study apart from other studies in the same field.
- Topic:
- Development, Oil, Industry, and Exchange Rates
- Political Geography:
- Turkey and Middle East
33. Saudi Arabia: A Colossus with Clay Feets/Arabia Saudí: Un coloso con los pies de barro
- Author:
- Eugenia López-Jacoiste Díaz
- Publication Date:
- 10-2021
- Content Type:
- Journal Article
- Journal:
- Revista UNISCI/UNISCI Journal
- Institution:
- Unidad de investigación sobre seguridad y cooperación (UNISCI)
- Abstract:
- The political-religious foundation of the Kingdom of Saudi Arabia is Wahhabism that marks its identity, society and politics. The Al Saud dynasty defends and expands Sunni Islam in the region and beyond its borders. In order to understand the interests and objectives of Saudi foreign policy, this article analyzes the main geopolitical elements at the service of the stability and hegemony of the Al Saud house in the most turbulent region of the Middle East. The Saudi government is developing a foreign policy, unsuspected in the past, to maintain its historic alliance with Washington, despite the ups and downs, and to transform the old rivalries between Riyadh and Tehran into new opportunities, including with Israel. This change in Saudi foreign policy is due to the controversial Crown Prince Mohamed bin Salman who knows how to take advantage of the changing regional geopolitics and Saudi financial instruments, but also the military and technological in favor of a more proactive and modern Saudi Arabia, despite his weaknesses./El fundamento político-religioso del Reino de Arabia Saudí es el wahabismo que marca su identidad, su sociedad y su política. La dinastía Al Saud defiende y expande el islam sunní en la región y fuera de sus fronteras. Para poder entender los intereses y objetivos de la política exterior saudí, este artículo analiza los principales elementos geopolíticos al servicio de la estabilidad y hegemonía de la casa Al Saud en la región más convulsa de Oriente Medio. El Gobierno saudí está desarrollando una política exterior, insospechada en el pasado para mantener su histórica alianza con Washington, a pesar de los altibajos, y transformar las viejas rivalidades entre Riad y Teherán en nuevas oportunidades, incluso con Israel. Este cambio en la política exterior saudí se debe al controvertido Príncipe Heredero Mohamed bin Salmán que sabe aprovechar la cambiante geopolítica regional y los instrumentos financieros saudíes, pero también los militares y tecnológicos a favor de una Arabia Saudí más proactiva y moderna, a pesar de sus debilidades.
- Topic:
- Foreign Policy, Government, Oil, Military Affairs, Geopolitics, and Wahhabism
- Political Geography:
- Iran, Middle East, Israel, Yemen, Saudi Arabia, Syria, Persian Gulf, and United States of America
34. Looking West. The Rise of Asia in the Middle East
- Author:
- Valeria Talbot, Ugo Tramballi, Paola Magri, Zhao Jianming, Kabir Taneja, Adel Abdel Ghafar, Jeongmin Seo, Naser Al-Tamimi, Nael Shama, Sara Bazoobandi, and Anshel Pfeffer
- Publication Date:
- 08-2020
- Content Type:
- Special Report
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- As the world’s economic and political centre of gravity moves increasingly towards East and South Asia, we can expect a number of countries in these regions to devote more attention to the Middle East. The relations between East and South Asia and the Middle East have significantly expanded as a result of the global rise of Asian economic powers, particularly China, India, Japan and South Korea. Not only oil but also trade, investment, infrastructure, and tourism is the name of the business with the MENA region. Beyond energy and economic interests, questions arise about the potential geopolitical dimension of these evolving ties. What are the strategic implications of the projection of Asian countries in an unstable, fragmented and volatile region? How do they interact with each other and with other international players? Last but not least, will the Covid-19 pandemic be a game changer in (re)shaping relations in the future?
- Topic:
- Foreign Policy, Oil, Regional Cooperation, European Union, Geopolitics, Business, and Soft Power
- Political Geography:
- Japan, China, Europe, Iran, Middle East, India, Israel, Asia, South Korea, Egypt, Gulf Cooperation Council, and Gulf Nations
35. Saudi-Russia oil war is a game theory masterstroke
- Author:
- Antoine Halff
- Publication Date:
- 03-2020
- Content Type:
- Working Paper
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- On the face of it, the idea of Saudi Arabia and Russia starting an oil price war in the middle of a global pandemic is as dumb as it gets. From a game theory perspective, it is a masterstroke. Analysts have called the breakdown of Opec+ and the lifting of the supply cuts that kept the oil market balanced in the last two years anything from a spectacular blunder to collective suicide. A new model of the oil market led by the inventors of mean-field game theory, Fields Medal laureate Pierre-Louis Lions and Jean Michel Lasry, suggests otherwise.
- Topic:
- Energy Policy, Oil, Natural Resources, and Strategic Competition
- Political Geography:
- Russia, Europe, Middle East, and Saudi Arabia
36. A Saudi-U.S.-Russia Oil Deal Is Not a Good Idea
- Author:
- Christof Ruhl
- Publication Date:
- 04-2020
- Content Type:
- Working Paper
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- Oil markets are sending confusing signals at a time when more confusion is the last thing anyone needs. When Russia walked out on OPEC+ rather than contribute to more output cuts, Saudi Arabia turned on the crude taps. Whatever Riyadh’s intention, this “price war” was quickly made meaningless by the impact of the new coronavirus on global oil demand. The price collapse has been beyond anything anyone could have imagined. Now, storage room for crude is becoming scarce. Analysts warn darkly that plunging prices may threaten global economic stability. Equities follow the oil price news. Everyone seems to agree that prices should stop falling; and yet no one seems to argue that a very low oil price is exactly what the world’s economy needs to recover. The combination of price war and pandemic is also creating strange bedfellows. Some American shale producers are advocating that their country blocks Saudi oil imports, others want to talk to OPEC. President Donald Trump’s government has expressed an interest in cooperating on global oil supplies with Saudi Arabia and Russia; it’s nudging OPEC+ to reconvene, or an even wider group of producers to meet. Could we be witnessing the emergence of an unholy alliance of Saudi Arabia, Russia and the U.S., to “manage volatility,” and incidentally shore up the price of oil?
- Topic:
- Energy Policy, International Trade and Finance, Oil, and Natural Resources
- Political Geography:
- Russia, Europe, Middle East, Saudi Arabia, North America, and United States of America
37. 5 Reasons Why a Global Agreement to Prop Up Oil Prices Won’t Work
- Author:
- Jason Bordoff
- Publication Date:
- 04-2020
- Content Type:
- Working Paper
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- In April 1986, U.S. Vice President George H.W. Bush traveled to Saudi Arabia with a request for King Fahd, the country’s ruler at the time: Please raise the price of oil. After falling around 60 percent over the course of a few months, cheap oil was becoming a “two-edged sword for America,” Bush explained. Consumers might enjoy low prices at the gas pump, but evaporating revenues for U.S. oil producers undermined America’s own oil supply, and thus its national security. That was the last time the White House publicly sought more expensive oil—until now. U.S. President Donald Trump has been pushing Saudi Arabia and Russia to cut output in the hopes that less crude on the market will raise oil prices, which have fallen by two-thirds since the start of the year. A low oil price threatens an already teetering U.S. shale oil sector with a wave of bankruptcies and job losses. All eyes are therefore on OPEC and its allies, which will meet by videoconference on Thursday to discuss the way forward—followed by an emergency meeting of G-20 energy ministers on Friday, where the United States will be represented as well. It was at the last meeting of OPEC and key non-OPEC producers in Vienna on March 6 that Russia refused to go along with a Saudi proposal for deeper production cuts. The subsequent surge in Saudi supply set off a vicious price war that has seen the price of oil briefly fall below $20 a barrel.
- Topic:
- Energy Policy, Oil, Regional Cooperation, Natural Resources, and OPEC
- Political Geography:
- Middle East and Persian Gulf
38. The 2020 Oil Crash’s Unlikely Winner: Saudi Arabia
- Author:
- Jason Bordoff
- Publication Date:
- 05-2020
- Content Type:
- Working Paper
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- With 4 billion people around the world under lockdown as the coronavirus pandemic grows, demand for gasoline, jet fuel, and other petroleum products is in freefall, as are oil prices. The price of a barrel of crude has been so low in the United States that sellers recently had to pay people to take it off their hands. As a result, oil-dependent economies are reeling. In the United States, the largest oil producer in the world, the number of rigs drilling for oil has plummeted 50 percent in just two months, almost 40 percent of oil and gas producers could be insolvent within the year, and 220,000 oil workers are projected to lose their jobs. Around the world, petrostates from Nigeria to Iraq to Kazakhstan are struggling and their currencies tanking. Some, like Venezuela, face an economic and social abyss. While 2020 will be remembered as a year of carnage for oil nations, however, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.
- Topic:
- Energy Policy, Oil, Natural Resources, and Gas
- Political Geography:
- Middle East, Saudi Arabia, and Gulf Nations
39. Special Commentary: Scenarios for a Post-COVID Middle East
- Author:
- Christopher J. Bolan
- Publication Date:
- 05-2020
- Content Type:
- Commentary and Analysis
- Institution:
- The Strategic Studies Institute of the U.S. Army War College
- Abstract:
- It is worth approaching an assessment of the likely impacts of the COVID-19 pandemic on the Middle East with a strong dose of humility. Nonetheless, it is clear that the spread of this disease has already had major impacts on the global economy, drastically reducing demand for Middle East oil exports, and leading to a historic collapse in oil prices. The immediate challenges of dealing with the monumental health and economic challenges posed by COVID-19 will add to the troubles of a region already burdened by multiple civil wars, poorly performing economies, growing civil discontent, and intensified sectarian divisions. This article offers a preliminary assessment of the potential impacts of COVID-19 on the security landscape of the Middle East and advances recommendations for how US military strategy and operations might adapt.
- Topic:
- Security, Oil, Military Strategy, Economy, Exports, Pandemic, and COVID-19
- Political Geography:
- Middle East
40. Energy sector diversification: Meeting demographic challenges in the MENA region
- Author:
- Bina Hussein
- Publication Date:
- 01-2020
- Content Type:
- Special Report
- Institution:
- Atlantic Council
- Abstract:
- Countries in the Middle East and North Africa (MENA) region are expected to witness a substantial growth in population over the next three decades. Many of the hydrocarbon-rich nations in this region will need to meet a commensurate increase in job demand. This report focuses on four nations that are predominantly reliant on the oil and gas sector: Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Algeria. In all four nations, the majority of the local population is employed in the public sector, which, in the long term, will become economically unsustainable. In order to meet the growing job demand, these nations must both diversify their economies beyond the energy sector and expand their energy sectors beyond hydrocarbons. Doing so will create important employment opportunities in new industries. Saudi Arabia, the UAE, and Kuwait all have strategies in place that, if followed, could pave the way towards a diversified knowledge-based economy. Algeria, on the other hand, is at a crossroads. Even as it is undergoing a political transition, the transition can create opportunities for the new government to change the country’s course and push economic reforms that are not only aimed at lowering the current unemployment rate but also at making the private sector more enticing. Additionally, all four nations will need to take steps to increase female participation in the workforce by easing current restrictions and making labor laws more favorable towards women. The energy sector plays a large role in the economies of all four nations. This sector has a critical role to play in efforts to diversify the economy and teach skills that will be beneficial in the future or can be applied in other sectors as well. Moreover, all four nations also have sovereign wealth funds that either play, or can play, a key role in diversifying the economy, strengthening existing industries, and helping to create new industries altogether. This report offers the following recommendations on how these four nations can work towards meeting demographic challenges in relation to the economy, specifically the role of the energy sector: Governments can strengthen the private sector through increased foreign investment and by incentivizing entrepreneurship through reforms that open up the economy and make it more lucrative for investors. Governments can create laws and support structures that encourage women to work and increase female participation in the workforce. Opportunities should be provided to teach skills and impart knowledge relevant to the job market that will also be relevant in the future. Lessons should be learned from the experience of the energy sector and leveraged to achieve successes in other areas. For example, the state-owned oil and gas companies have successfully set up a structure that allows them to not only invest in their employees but also take care of the community by offering health care services, education, and more.
- Topic:
- Demographics, Energy Policy, Markets, Oil, Governance, Geopolitics, Gas, Renewable Energy, Fossil Fuels, and Transition
- Political Geography:
- Middle East, North Africa, and Gulf Nations