Global and Regional Spillovers to GCC Equity Markets

IMF Working Papers, June 1, 2011

Source details

GCC equity markets were impacted by spillovers from U.S. equity markets despite varying degrees of foreign participation.
Spillovers from regional equity markets were also important, but the magnitude of the effects were on average smaller than that from mature markets.
The results illustrated episodes of contagion, in particular during the recent global financial crisis.
Given the degree of openness, and open capital accounts, the financial channel is an important source through which volatility is transmitted.
GCC equity markets are not immune from global and regional financial shocks.
These findings refute the notion of decoupling between the GCC equity and global equity markets.

Subject: Emerging and frontier financial markets, Financial markets, Financial sector policy and analysis, Market capitalization, Oil prices, Prices, Spillovers, Stock markets
Keywords: contagion, country j equity market, country stock exchanges, Emerging and frontier financial markets, financial integration, GCC, GCC economy, GCC equity markets, GCC Index, GCC market, Global, Market capitalization, Oil prices, response to a rise, spillovers, Stock markets, WP

1. Listed Companies
- 1. Listed Companies (Markdown version)
- 1. Listed Companies (PDF)