Title

Recent Evidence on the Oil Price Shocks on Gulf Cooperation Council Stock Markets

Source of Publication

International Journal of the Economics of Business

Abstract

© 2017, © 2017 International Journal of the Economics of Business. The recent plunge in the price of oil affected many countries, especially major oil producers and exporters, such as the Gulf Cooperation Council (GCC), which accounts for half of the global oil reserves. This paper examines the impact of oil price changes on GCC stock markets, including Bahrain, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia, and United Arab Emirates over a 10-year period, 2005–2015. We examine the direction of influence and influence absorption through Granger causality and impulse response function. The results are important for portfolio management at the international level, and provide insights for government and regulatory authorities in times of oil price change. Additionally, the evidence suggests the need for more economic diversification at the country level in the GCC region to mitigate high volatility in the event of oil shocks.

Document Type

Article

First Page

297

Last Page

312

Publication Date

5-4-2018

DOI

10.1080/13571516.2017.1379216

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