<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper uses the law of one price (LOP) and the DCC-GARCH method based on ten-day price sequences. The findings indicate that, compared with the international refined oil markets with mature market-oriented pricing mechanisms, only in the Chinese market do gasoline and diesel prices meet the LOP. This finding shows that, in the context of the gradual integration of the global refined oil market, the international level of China's refined oil price is still quite low. The price reforms pertaining to China's refined oil products still need to be pushed forward in the direction of marketization and internationalization.</p></abstract>

This paper uses the law of one price (LOP) and the DCC-GARCH method based on ten-day price sequences. The findings indicate that, compared with the international refined oil markets with mature market-oriented pricing mechanisms, only in the Chinese market do gasoline and diesel prices meet the LOP. This finding shows that, in the context of the gradual integration of the global refined oil market, the international level of China's refined oil price is still quite low. The price reforms pertaining to China's refined oil products still need to be pushed forward in the direction of marketization and internationalization.

A Comparative Study on the Dynamic Correlation Effect of Foreign and Domestic Gasoline and Diesel Price Fluctuations

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper uses the law of one price (LOP) and the DCC-GARCH method based on ten-day price sequences. The findings indicate that, compared with the...

A Comparative Study on the Dynamic Correlation Effect of Foreign and Domestic Gasoline and Diesel Price Fluctuations

Published Online: Aug 24, 2020

Page range: 581 - 592

Received: Mar 12, 2020

Accepted: May 10, 2020

DOI: https://doi.org/10.2478/amns.2020.2.00027

Keywords
Gasoline & diesel prices, Correlation effect, Marketization reform

© 2020 Shuliang Zhang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

A Comparative Study on the Dynamic Correlation Effect of Foreign and Domestic Gasoline and Diesel Price Fluctuations

Published Online: Aug 24, 2020

Page range: 581 - 592

Received: Mar 12, 2020

Accepted: May 10, 2020

DOI: https://doi.org/10.2478/amns.2020.2.00027

KeywordsGasoline & diesel prices, Correlation effect, Marketization reform

© 2020 Shuliang Zhang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Gasoline & diesel prices, Correlation effect, Marketization reform