<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...

Sequence	Test form	ADF	1% Critical Value	Stationarity
DLNCP_g	(0,0,0)	−8.893053	−2.583298	Stationary
DLNEP_g	(0,0,0)	−9.457722	−2.583298	Stationary
DLNMP_g	(0,0,0)	−9.633763	−2.583298	Stationary
DLNAP_g	(0,0,0)	−9.628522	−2.583298	Stationary
DLNCP_d	(0,0,0)	−7.892860	−2.583298	Stationary
DLNEP_d	(0,0,0)	−9.336462	−2.583298	Stationary
DLNMP_d	(0,0,0)	−10.55363	−2.583298	Stationary
DLNAP_d	(0,0,0)	−9.123758	−2.583298	Stationary

Explained variable	Explanatory variable	α	β	RLOP	ALOP
DLNCP_d	DLNCP_g	0.000890	0.826145	Accepted	Accepted
DLNEP_d	DLNEP_g	−0.001750	0.612518	Rejected	Rejected
DLNMP_d	DLNMP_g	−0.002504	0.564950	Rejected	Rejected
DLNAP_d	DLNAP_g	−0.000689	0.721256	Rejected	Rejected

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.

Fig. 1

Fig. 2

ADF stationarity test of variables

Estimation results of regression coefficient and test results of constraint conditions (0.01level)

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.

Fig. 1

Fig. 2

ADF stationarity test of variables

Estimation results of regression coefficient and test results of constraint conditions (0.01level)

Keywords
Gasoline & diesel prices, Correlation effect, Marketization reform