Saudi's Growth and Financial Spillovers to Other GCC Countries: An Empirical Analysis

18 Pages Posted: 14 Jan 2019

See all articles by Olumuyiwa Adedeji

Olumuyiwa Adedeji

International Monetary Fund (IMF)

Sohaib Shahid

International Monetary Fund (IMF)

Ling Zhu

International Monetary Fund (IMF)

Date Written: December 2018

Abstract

This paper examines real and financial linkages between Saudi Arabia and other GCC countries. Growth spillovers from Saudi Arabia to Bahrain are found to be sizeable and statistically significant, but those to other GCC countries are not found to be significant. Equity market movements in Saudi Arabia are found to have significant implications for other GCC countries, while there is no evidence of co-movements in bonds markets. These findings suggest some degree of interdependence among GCC countries.

Keywords: Saudi Arabia, Middle East, Growth, Gulf Corporation Council, Spillovers, Financial Markets and the Macroeconomy, Country and Industry Studies of Trade, Trade Forecasting and Simulation, International Policy Coordination and Transmission

JEL Classification: E44, F14, F17, F42, O47, F15

Suggested Citation

Adedeji, Olumuyiwa and Shahid, Sohaib and Zhu, Ling, Saudi's Growth and Financial Spillovers to Other GCC Countries: An Empirical Analysis (December 2018). IMF Working Paper No. 18/278. Available at SSRN: https://ssrn.com/abstract=3314615

Olumuyiwa Adedeji (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Sohaib Shahid

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ling Zhu

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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