The paper empirically examines the links among the stock market indices of GCC countries, and between the GCC as an economic block and six selected advanced markets (UK, USA, China, France, Japan and Australia). The methodologies adopted are simple and well accepted approaches to measure the stock markets linkages. We used cointegration methodologies to explore their interdependencies. We also constructed a gravity model to estimate the effect of some geographic variables to capture financial asset behavior. The Gulf Corporation Council (GCC) markets exhibit a stronger co-movement and causal relationship among themselves than with the advanced markets due to economic and political reasons. This study has laid some foundation for critical analysis of the linkages within the GCC stock markets and between the GCC and the advanced stock markets. The paper has some practical implications for practitioners and academics. For both existing and prospective international investors, the GCC stock markets are available to be further exploited not only for maximizing financial gains but also to diversify their investment port folios. The behavioral aspect of market participants and the dynamics of oil pricing deserve more theoretical and empirical research in the future.
Ibrahim Almahmoud, Abdulaziz. (2015). Co-Movement Of Stock Markets: Evidence From GCC Countries And Advanced Stock Markets. المجلة العلمية للإقتصاد و التجارة, 45(1), 5-27. doi: 10.21608/jsec.2015.163911
MLA
Abdulaziz Ibrahim Almahmoud. "Co-Movement Of Stock Markets: Evidence From GCC Countries And Advanced Stock Markets". المجلة العلمية للإقتصاد و التجارة, 45, 1, 2015, 5-27. doi: 10.21608/jsec.2015.163911
HARVARD
Ibrahim Almahmoud, Abdulaziz. (2015). 'Co-Movement Of Stock Markets: Evidence From GCC Countries And Advanced Stock Markets', المجلة العلمية للإقتصاد و التجارة, 45(1), pp. 5-27. doi: 10.21608/jsec.2015.163911
VANCOUVER
Ibrahim Almahmoud, Abdulaziz. Co-Movement Of Stock Markets: Evidence From GCC Countries And Advanced Stock Markets. المجلة العلمية للإقتصاد و التجارة, 2015; 45(1): 5-27. doi: 10.21608/jsec.2015.163911
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