Modelling Relationship Between WPI & Crude Oil: Cointegration and Casuality Analysis 

inEconomics

Background

The Wholesale Price Index (WPI) is a critical economic indicator measuring price changes at the wholesale level across a broad range of goods, including agricultural products, fuel, and manufactured products. Crude oil prices are highly volatile, driven by global supply-demand dynamics, geopolitical events, and market speculation. As crude oil plays a major role in the cost structure of goods and services, this project aims to model the relationship between crude oil prices and WPI in India, focusing on cointegration and causality analysis.

Learning Outcome

  • LO #1: Understand the relationship between crude oil prices and wholesale prices, and the mechanisms through which global energy prices affect national price levels.

  • LO #2: Apply cointegration and causality analysis to assess the long-term equilibrium relationship between crude oil prices and WPI using econometric tools.

  • LO #3: Conduct empirical analysis on the relationship between crude oil prices and WPI, utilizing econometric techniques such as the Granger causality test and cointegration analysis.

What is on offer?

  • 1-on-1 sessions with Ph.D. Scholars
  • Supervision and Guidance from Global Faculty
  • Assistance in publishing research
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