Financial Integration in the GCC Stock Markets: Evidence from the Early 2000s Development Phase

28 Pages Posted: 22 Jun 2007

See all articles by John L. Simpson

John L. Simpson

Curtin University - Centre for Research in Applied Economics

Date Written: 2007

Abstract

The GCC markets are the most advanced in economic reforms in the Middle East and have proceeded solidly towards regional integration during the early 2000s. Some of the GCC markets (for example, Bahrain and the UAE) had made solid progress in their expansion, reforms and openness. Over the period there is evidence of cointegration of the UAE market with the other GCC markets in prices. Causality analysis shows the UAE was the major influence over prices in the Saudi Arabian, Kuwait and Qatar markets. The UAE already presents a strong case to be the regional financial centre if development continues strongly.

Keywords: Informational Efficiency, Cointegration, Causality, Variance Decomposition

JEL Classification: F36

Suggested Citation

Simpson, John L., Financial Integration in the GCC Stock Markets: Evidence from the Early 2000s Development Phase (2007). Available at SSRN: https://ssrn.com/abstract=994706 or http://dx.doi.org/10.2139/ssrn.994706

John L. Simpson (Contact Author)

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
278
Abstract Views
1,105
rank
110,434
PlumX Metrics