Manuscript Title:

SAUDI STOCK MARKET DEVELOPMENT AND ECONOMIC GROWTH

Author:

Dr. NAGWA AMIN ABDELKAWY, Dr. VIMALA VENUGOPAL MUTHUSWAMY

DOI Number:

DOI:10.17605/OSF.IO/F7VZK

Published : 2022-05-10

About the author(s)

1. Dr. NAGWA AMIN ABDELKAWY - Assistant Professor, Department of Economics, College of Business Administration, King Faisal University, Kingdom of Saudi Arabia.
2. Dr. VIMALA VENUGOPAL MUTHUSWAMY - Associate Professor, Business Administration Department, King Faisal University. Saudi Arabia.

Full Text : PDF

Abstract

The development of stock market is considered a fundamental part in economic development. In this concern, the study aims to examine the long run causal relationship between economic growth and stock market development in Saudi Arabia using the autoregressive distribute lag model (ARDL) with bound test. The results suggest that Saudi stock market development have both significant negative and positive causal relationship on economic growth. Total value of stocks traded, concentration and volatility found to cause negative significant effect on economic growth. While stock market capitalization and market turnover ratio have positively significant effect on economic growth. However, there is partial unidirectional causality flow from both stock market capitalization and stock market turnover to economic growth and a partial unidirectional causality flow from economic growth to total value of traded shares.


Keywords

Stock market development; Economic growth; market capitalization; total value of stock traded; stock market turnover, stock market volatility; Stock market concentration.