The Impact of Oil Prices on the Food Inflation in Kazakhstan

Authors

  • Sabit Baimaganbetov
  • Dinmukhamed Kelesbayev Turkestan city, Akhmet Yassawi University
  • Gulzhan Baibosynova
  • Rima Yermankulova
  • Botagoz Dandayeva

Abstract

This paper assesses empirically the effects of real oil price shocks on the food inflation in Kazakhstan for the monthly period 2004-2019 by using a VAR model. Standard unit root tests do not yield reliable results in the presence of breaks. In this regard, Zivot-Andrews (1992) has been tested with the help of unit root test. Food prices have been proven to be I(1) according to the Zivot-Andrews (1992) test, while I(0) is according to the ADF test. In subsequent steps, the causality test of the variables was performed. According to the test, there is a double-chance causality between oil prices and food prices. The short-term effect of the variables is investigated with the help of the VAR model. As a result, crude oil prices have an indirect impact on food prices.Keywords: Kazakhstan, Oil Prices, Food Prices, Inflation, VAR Model, Unit-Root TestJEL Classications: E64, L66, P44, Q41DOI: https://doi.org/10.32479/ijeep.10844

Downloads

Download data is not yet available.

Author Biography

Dinmukhamed Kelesbayev, Turkestan city, Akhmet Yassawi University

Assoc. Prof. Dr.

Downloads

Published

2021-04-10

How to Cite

Baimaganbetov, S., Kelesbayev, D., Baibosynova, G., Yermankulova, R., & Dandayeva, B. (2021). The Impact of Oil Prices on the Food Inflation in Kazakhstan. International Journal of Energy Economics and Policy, 11(3), 73–79. Retrieved from https://econjournals.com./index.php/ijeep/article/view/10844

Issue

Vol. 11 No. 3 (2021)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.