<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The interconnectedness of global economies made it inevitable for countries to isolate themselves rather, they partner with each other majorly for economic and political gains. This often at times have a positive and negatives outcomes base on the fact that the more advanced economy tends to cast shadow on the smooth and predictable movement of some markets in the less advanced economy. On this note, it is essential for scholars to relate and determine the impact and the direction of the movement specifically with regards to stock market performance and Economic Policy Uncertainty (EPU), as it concerns the Gulf Cooperation Council (GCC) region and the continent of Europe. Hence, this study investigates the effect of the changes of European Policy Uncertainty index on net oil exporter countries of the GCC stock market performance. Using the Vector Autoregressive (VAR) methodology to estimate the result, the outcome of the result implies that the impact of the changes in European policy uncertainty index on GCC’s stock markets is negative but not significant; the effect of Dollar exchange rate and US 3-month Treasury bill rate is not significant and finally, the effect of Brent Oil price on GCC countries’ stock markets is positive and significant.</p></abstract>

The interconnectedness of global economies made it inevitable for countries to isolate themselves rather, they partner with each other majorly for economic and political gains. This often at times have a positive and negatives outcomes base on the fact that the more advanced economy tends to cast shadow on the smooth and predictable movement of some markets in the less advanced economy. On this note, it is essential for scholars to relate and determine the impact and the direction of the movement specifically with regards to stock market performance and Economic Policy Uncertainty (EPU), as it concerns the Gulf Cooperation Council (GCC) region and the continent of Europe. Hence, this study investigates the effect of the changes of European Policy Uncertainty index on net oil exporter countries of the GCC stock market performance. Using the Vector Autoregressive (VAR) methodology to estimate the result, the outcome of the result implies that the impact of the changes in European policy uncertainty index on GCC’s stock markets is negative but not significant; the effect of Dollar exchange rate and US 3-month Treasury bill rate is not significant and finally, the effect of Brent Oil price on GCC countries’ stock markets is positive and significant.

The Impact of European Uncertainty on the Gulf Cooperation Council Markets

Journal of Heterodox Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The Impact of European Uncertainty on the Gulf Cooperation Council Markets"}

The interconnectedness of global economies made it inevitable for countries to isolate themselves rather, they partner with each other majorly for economic and...

The Impact of European Uncertainty on the Gulf Cooperation Council Markets

Data publikacji: 02 mar 2019

Zakres stron: 37 - 50

DOI: https://doi.org/10.1515/jheec-2017-0003

Słowa kluczowe
GCC, Stock Market Performance, European Policy Uncertainty, VAR

© 2017 Abdullah Saeed S Alqahtani et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Impact of European Uncertainty on the Gulf Cooperation Council Markets

Data publikacji: 02 mar 2019

Zakres stron: 37 - 50

DOI: https://doi.org/10.1515/jheec-2017-0003

Słowa kluczoweGCC, Stock Market Performance, European Policy Uncertainty, VAR

© 2017 Abdullah Saeed S Alqahtani et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
GCC, Stock Market Performance, European Policy Uncertainty, VAR