OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS
The purpose of this paper is to test the impact of oil price shocks on the stock markets of the two biggest and most liquid GCC equity markets, those of Kuwait and Saudi Arabia. It is expected that the two stock markets react similarly to oil price shocks. Actually the results show heterogeneity in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2013-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | http://www.econjournals.com/index.php/ijefi/article/view/393/pdf |
| _version_ | 1797922800469540864 |
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| author | Samih Antoine Azar Loucine Basmajian |
| author_facet | Samih Antoine Azar Loucine Basmajian |
| author_sort | Samih Antoine Azar |
| collection | DOAJ |
| description | The purpose of this paper is to test the impact of oil price shocks on the stock markets of the two biggest and most liquid GCC equity markets, those of Kuwait and Saudi Arabia. It is expected that the two stock markets react similarly to oil price shocks. Actually the results show heterogeneity in responses. While there is prima facie evidence that both stock markets are influenced positively and linearly by oil price shocks, this evidence disappears when additional variables are added to the regressions. With the larger specification oil price shocks do not impact, neither linearly or non-linearly, Kuwaiti stock markets. By contrast Saudi markets react non-linearly to both oil price shocks and shocks in the US S&P 500. The only common feature for both equity markets is the positive relation with the shocks in the US S&P 500. |
| first_indexed | 2024-04-10T14:37:04Z |
| format | Article |
| id | doaj.art-41cf2007552c465c936230521a9aa695 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:37:04Z |
| publishDate | 2013-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-41cf2007552c465c936230521a9aa6952023-02-15T16:08:26ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-01-0132294304OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETSSamih Antoine AzarLoucine BasmajianThe purpose of this paper is to test the impact of oil price shocks on the stock markets of the two biggest and most liquid GCC equity markets, those of Kuwait and Saudi Arabia. It is expected that the two stock markets react similarly to oil price shocks. Actually the results show heterogeneity in responses. While there is prima facie evidence that both stock markets are influenced positively and linearly by oil price shocks, this evidence disappears when additional variables are added to the regressions. With the larger specification oil price shocks do not impact, neither linearly or non-linearly, Kuwaiti stock markets. By contrast Saudi markets react non-linearly to both oil price shocks and shocks in the US S&P 500. The only common feature for both equity markets is the positive relation with the shocks in the US S&P 500.http://www.econjournals.com/index.php/ijefi/article/view/393/pdfOil pricesstock marketsKuwait and Saudi ArabiaUS S&P 500GARCHnon linear relations |
| spellingShingle | Samih Antoine Azar Loucine Basmajian OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS International Journal of Economics and Financial Issues Oil prices stock markets Kuwait and Saudi Arabia US S&P 500 GARCH non linear relations |
| title | OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS |
| title_full | OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS |
| title_fullStr | OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS |
| title_full_unstemmed | OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS |
| title_short | OIL PRICES AND THE KUWAITI AND THE SAUDI STOCK MARKETS |
| title_sort | oil prices and the kuwaiti and the saudi stock markets |
| topic | Oil prices stock markets Kuwait and Saudi Arabia US S&P 500 GARCH non linear relations |
| url | http://www.econjournals.com/index.php/ijefi/article/view/393/pdf |
| work_keys_str_mv | AT samihantoineazar oilpricesandthekuwaitiandthesaudistockmarkets AT loucinebasmajian oilpricesandthekuwaitiandthesaudistockmarkets |