The Reaction of Stock Markets in the Gulf Cooperation Council Countries to Economic Policy Uncertainty in the United States

2019
Abdullah Saeed S Alqahtani, Hongbing Ouyang, Adam Ali

This study investigates if the changes in economic policy uncertainty in the U.S. can explain the returns on stock markets of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The study also examines how the stock market returns of the six GCC countries respond to the changes in economic policy uncertainty in the U.S. The results demonstrate that changes in economic policy uncertainty in the U.S. are not significantly linked with the returns on all the stock markets except Oman stock market, which shows a statistical significant negative relationship with the changes in economic policy uncertainty in the U.S. Controlling for the effects of the U.S. stock market and oil price, returns on all the six GCC markets including Oman show insignificant coefficients. The returns on all the stock markets do not respond to the changes in economic policy uncertainty. The results of Granger causality tests show that the changes in economic policy uncertainty in the U.S. do not cause the returns of all the six GCC stock markets.

Atslēgas vārdi
GCC, Oil Markets, Policy Uncertainty Index, Stock Market Performance, Spillover Effects, USA
DOI
10.2478/eb-2019-0002

Alqahtani, A., Ouyang, H., Ali, A. The Reaction of Stock Markets in the Gulf Cooperation Council Countries to Economic Policy Uncertainty in the United States. Economics and Business, 2019, Vol. 33, No. 1, 22.-34.lpp. ISSN 2256-0386. e-ISSN 2256-0394. Pieejams: doi:10.2478/eb-2019-0002

Publikācijas valoda
English (en)