Saudi’s Growth and Financial Spillovers to Other GCC Countries: An Empirical Analysis

ByOlumuyiwa S Adedeji, Sohaib Shahid, Ling Zhu

December 11, 2018

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines real and financial linkages between Saudi Arabia and other GCC countries. Growth spillovers from Saudi Arabia to Bahrain are found to be sizeable and statistically significant, but those to other GCC countries are not found to be significant. Equity market movements in Saudi Arabia are found to have significant implications for other GCC countries, while there is no evidence of co-movements in bonds markets. These findings suggest some degree of interdependence among GCC countries.

Subject: Financial institutions, Financial markets, Financial sector policy and analysis, Financial services, Oil prices, Prices, Sovereign bonds, Spillovers, Stock markets, Yield curve

Keywords: equity market movement, GCC bond spread, GCC country, GCC equity, GCC sovereign bond market spillover, Global, Growth, growth shock, Gulf Corporation Council, Oil prices, Sovereign bonds, Spillovers, Stock markets, WP, Yield curve

Pages:
17
Volume:
2018
DOI:
https://doi.org/10.5089/9781484388792.001
Issue:
278
Series:
Working Paper No. 2018/278
Stock No:
WPIEA2018278
ISBN:
9781484388792
ISSN:
1018-5941

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