OIL PRICES AND STOCK MARKETS IN GCC COUNTRIES: EMPIRICAL EVIDENCE FROM PANEL ANALYSIS
Abstract
In this paper, we examine long‐run links between oil prices and stock markets in Gulf Cooperation Council (GCC) using recent bootstrap panel cointegration techniques and seemingly unrelated regression (SUR) methods. Since GCC countries are major world energy market players, their stock markets are likely to be susceptible to oil price. We show that there is evidence for cointegration between oil prices and stock markets in GCC countries, while the SUR results indicate that oil price increases have a positive impact on stock prices, except in Saudi Arabia. Copyright © 2011 John Wiley & Sons, Ltd.
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In countries that sell a lot of oil, oil price changes affect stock market returns.
“Arouri and Rault [47] found that in countries that sell a lot of oil, when oil prices change, it affects how much money people make in the stock market.”
From Dynamics of economic growth in ASEAN-5 countries: a panel ARDL approach (2024) · cites this paper as [47]
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- Authors
- Arouri, M. E. H., & Rault, C.
- Affiliations
- Université d'Orléans (FR)
- ORCID
- Rault, Christophe
- Venue
- International Journal of Finance & Economics
- Publisher
- Wiley
- Published
- 2011-01-31
- Volume
- 17
- Issue
- 3
- Pages
- 242-253
- ISSN
- 1076-9307 (ISSN-L)
- 1099-1158
- OpenAlex
- W2106372379
- Cited by
- 375
- References
- 71
- Citations by year
- 2026: 11 · 2025: 17 · 2024: 31 · 2023: 29 · 2022: 38 · 2021: 32 · 2020: 57 · 2019: 32 · 2018: 28 · 2017: 21 · 2016: 21 · 2015: 17 · 2014: 17 · 2013: 13 · 2012: 8
- FWCI
- 33.26
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of Finance & Economics (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Keywords
- oil prices, stock market, Gulf Cooperation Council, oil price shocks, stock price reaction, cointegration, long-run relationship, energy markets, Saudi Arabia
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