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Do Financial Market Openness and Stock Market Returns Drive Economic Growth in GCC Countries? New Investigation from Panel Structural Breaks

Year: 2025

Type: article

Abstract: This paper revisits the effects of financial market openness and stock market returns on economic development in the Gulf Cooperation Council countries over the period 1993–2022. We performed the panel stationarity test advanced that accommodates the presence of multiple structural breaks and exploits the cross-section variations. Empirical results from several panel tests provide strong support for the long-run positive effect of financial market openness on economic growth and a long-run negative association between stock market returns and growth. Findings of the robustness checks reveal that the effect of both financial market openness and stock market returns on economic growth differs across countries.

Source: International Journal of Financial Studies

DOI: 10.3390/ijfs13010040

Authors: Hichem Saidi, Houssem Rachdi, Abdelaziz Hakimi, Khalil Alnabulsi

Institutions: Imam Mohammad ibn Saud Islamic University, University of Jendouba, NHL Stenden University of Applied Sciences

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,172