Impact of Structural Oil Price Shock Factors on the Gasoline Market and Macroeconomy in South Korea

This study decomposed shocks of the global crude oil (GCO) market and Korean gasoline (KG) into six types using structural vector auto-regressive model. Breaking down six, we analyzed how each shock affects macroeconomy in Korea. Results analysis revealed that supply did not cause a large fluctuation prices, but it harmed macroeconomy. By contrast, two on demand side GCO caused increase domestic they negatively affect Meanwhile, KG market, gasoline-refining significant prices. Both had some negative effects at certain point, are as strong shock. However, distribution Korea rarely consequences for major macroeconomic variables. Moreover, analyzing prices through historical decomposition, found demand-side factors have most important influence price since 2000s. From analysis, 2000s can be inferred to no impact Therefore, essential fluctuations must focused their