The Impact of Some Economic Variables on the Performance of A Sample of Arab Financial Markets For the Period From (2011-2019)
2022, Volume 41, Issue 133, Pages 340-363
AbstractThe study aimed to present some measures of performance of Arab financial markets and to build a model in which it is possible to clarify the size and direction of the impact of macroeconomic variables (exchange rate, inflation, gross domestic product, interest rate, oil price) as (independent) variables in the performance indicators of Arab financial markets (number of Listed companies, annual change in price index, value of traded shares) as variables (approved) and for a sample consisting of seven Arab countries (UAE, Bahrain, Tunisia, Saudi Arabia, Qatar, Kuwait, Egypt) for the period (2011-2019).
To achieve this, the correlation between the studied variables was measured and the Chi-square test was used to detect the presence of anomalies in the data for the sample countries and the Shapiro-Wilk test was used to detect the normal distribution of the study variables, and the weighted least squares method (WLS) was used. The results revealed that the exchange rate variable had its opposite effect in all the approved study models, while the gross domestic product reflected its positive effect in most of the models, and in light of the results, the researcher recommended the need for great interest by investors in following up exchange rate fluctuations to make and take decisions Efficient, effective, and a more accurate understanding of the relationship between price movement and economic variables within the Arab financial markets, since exchange rates are considered one of the investment tools, which is discussed as one of the competing options for investments
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