Browse Journals
MENU

Examining the impact of the stock market development on Economic growth- KSA Tadawul.

Emirati Journal of Business, Economics, & Social Studies

Articles

Vol. 3 No. 1 (2024): Emirati Journal of Business, Economics, & Social Studies

Examining the impact of the stock market development on Economic growth- KSA Tadawul.

  • Dr. Mohamad Saad El Dine Knio
  • Dr. Hassan Houmani
Submitted
May 27, 2024
Published
2024-05-27

Abstract

The relationship between stock market development and economic growth has been a subject of debate, with arguments centered on the impact of a well-functioning stock market on economic growth. This study argues that economic growth is influenced by stock market development and economic reform indicators, while controlling for other determinants of growth. The research employs a comprehensive theoretical framework linking stock market development to economic growth, and it specifically focuses on the Tadawul stock market in Saudi Arabia. The empirical analysis, using sophisticated panel data econometric techniques, reveals a significant positive correlation between Tadawul stock market and economic growth, particularly in the oil sector. This suggests that the Tadawul stock market plays a crucial role in influencing and contributing to economic growth, especially within the context of the oil industry.

References

  1. Molnár, A., & Csiszárik-Kocsir, Á. (2023). Forecasting Economic Growth with V4 Countries' Composite Stock Market Indexes-a Granger Causality Test. Acta Polytechnica Hungarica, 20(3), 135-154.
  2. Mushafiq, M., & Prusak, B. (2023). Nexus between stock markets, economic strength, R&D and environmental deterioration: New evidence from EU-27 using PNARDL approach. Environmental Science and Pollution Research, 30(12), 32965-32984.
  3. Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of political Economy, 98(5, Part 1), 1076-1107.
  4. Greenwood, J., & Smith, B. D. (1997). Financial markets in development, and the development of financial markets. Journal of Economic dynamics and control, 21(1), 145-181.
  5. Omran, M., & Bolbol, A. (2003). Foreign direct investment, financial development, and economic growth: evidence from the Arab countries. Review of Middle East Economics and Finance, 1(3), 37-55.
  6. Ometa, G., & Mashharaweb, F. (2002). The Microstructure of the Jordanian Capital Market: Electronic Trading and Liquidity Cost. Financial Development in Arab Countries, 238.
  7. Arestis, P., Demetriades, P. O., & Luintel, K. B. (2001). Financial development and economic growth: the role of stock markets. Journal of money, credit and banking, 16-41.
  8. Mazur, E. A., & Alexander, W. R. J. (2001). Financial sector development and economic growth in New Zealand. Applied Economics Letters, 8(8), 545-549.
  9. Gwartney, J., Lawson, R., & Norton, S. (2004). Economic Freedom of the World: 2004 Annual Report (Vancouver, Canada: The Fraser Institute).
  10. Gwartney, J. D., Lawson, R. A., & Holcombe, R. G. (1999). Economic freedom and the environment for economic growth. Journal of Institutional and Theoretical Economics (JITE)/Zeitschrift für die gesamte Staatswissenschaft, 643-663.
  11. Eltony, M. N. (2003). Quantitative Measures of Financial-Sector Reform in the Arab Countries. J. Energy & Dev., 29, 273.
  12. Lee, K., Pesaran, M. H., & Smith, R. (1997). Growth and convergence in a multi‐country empirical stochastic Solow model. Journal of applied Econometrics, 12(4), 357-392.
  13. Solow, R. M. (1956). A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.
  14. Solow, R. M. (1994). Perspectives on growth theory. Journal of economic perspectives, 8(1), 45-54.
  15. Levine, R. (1991). Stock markets, growth, and tax policy. The journal of Finance, 46(4), 1445-1465.
  16. Levine, R. (1996). Stock markets: a spur to economic growth. Finance and Development-English Edition, 33(1), 7-10.
  17. Levine, R. (1997). Financial development and economic growth: views and agenda. Journal of economic literature, 35(2), 688-726.
  18. Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of monetary Economics, 46(1), 31-77.Levine, Ross, and Sara Zervos, 1996, Stock Market Development and Long-Rw1 Growth, World Bank Economic Review 10, 323-339.
  19. Levine, R., & Zervos, S. (1998). Stock markets, banks, and economic growth. American economic review, 537-558.
  20. Levine, R., & Zervos, S. (1998). Capital control liberalization and stock market development. World development, 26(7), 1169-1183.
  21. Rousseau, P. L., & Wachtel, P. (2000). Equity markets and growth: Cross-country evidence on timing and outcomes, 1980–1995. Journal of Banking & Finance, 24(12), 1933-1957.
  22. Wachtel, P. (2003). How much do we really know about growth and finance?. Economic Review-Federal Reserve Bank of Atlanta, 88(1), 33-48.

Downloads

Download data is not yet available.

Similar Articles

1-10 of 29

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 > >>