This paper contributes to the current literature by adopting time varying conditional correlation and asset pricing models to discover how the dynamics of international oil prices affect energy related stock returns in China. After conditioning for structural instability, the results show a much...

This paper investigates the relationship between oil price shock and economic growth on the basis of the nonlinear approach developed by Hamilton [Hamilton, J., 2001. A parametric approach to flexible nonlinear inference. Econometrica 537-573.]. We use the approach, also in Hamilton [Hamilton,...