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The Impact of Macroeconomic Variables on Al-Quds Index: Empirical Evidence from Palestine

Author

Listed:
  • Ibrahim Awad
  • Mohanad Rezeq
  • Abdelrahman Aliwisat

Abstract

This study aimed at investigating the impact of macroeconomic variables, particularly GDP, CPI, unemployment, exchange rate, and interest rate on the Al-Quds Index (AQI). Also, the causality relationships between these variables were examined. Toward that end, the study used quarterly data observations over the period from 2002 to 2012. Accordingly, the study found that AQI isn’t significantly linked with macroeconomic variables. Granger causality indicates that AQI does not Granger causes the macroeconomic variables that been tested, and the macroeconomic variables also do not Granger cause the AQI, so that the macroeconomic variables cannot explain the behavior of the AQI due to the inefficiency of the AQI. For policy makers, this study confirms the necessity of future researches so as to significantly evaluate the Palestine Exchange (PEX).

Suggested Citation

  • Ibrahim Awad & Mohanad Rezeq & Abdelrahman Aliwisat, 2014. "The Impact of Macroeconomic Variables on Al-Quds Index: Empirical Evidence from Palestine," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 3(4), pages 228-241.
    • Handle: RePEc:rss:jnljfe:v3i4p6
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    3. McQueen, Grant & Roley, V Vance, 1993. "Stock Prices, News, and Business Conditions," The Review of Financial Studies, Society for Financial Studies, vol. 6(3), pages 683-707.
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