The Impact of Inflation on the Performance of Stock Markets in the Gulf Cooperation Council Countries
The Impact of Inflation on the Performance of Stock Markets in the Gulf Cooperation Council Countries
Author(s): Ismail Bengana, Khaled Mili, Abdullah Hamoud Alnefaie, Nourredine Khababa, Labidi Mehaouat, Zakaria KhedirSubject(s): Financial Markets, Public Finances, Socio-Economic Research
Published by: Transnational Press London
Keywords: Market Return Index; Co-Integration; Inflation; Ardl. Financial Sector Performance; Panel Data;
Summary/Abstract: This study explores the interplay between inflation and stock markets in Gulf Cooperation Council (GCC) countries from the 1990s to the early 21st century. Utilizing a PANEL time series model and Autoregressive Distributed Lag (ARDL) approach, we focus on the financial sector, emphasizing stock market performance. Our analysis of annual data reveals a significant, long-term impact of inflation on GCC stock markets, emphasizing a reciprocal relationship. We observe stability in this impact and identify potential variations among GCC countries. The study contributes valuable insights into the economic dynamics of the GCC region, with implications for investors, policymakers, and researchers navigating the intricate connection between inflation and stock market behavior.
Journal: Journal of Ecohumanism
- Issue Year: 3/2024
- Issue No: 6
- Page Range: 347-354
- Page Count: 8
- Language: English
