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Economic versus financial integration or decoupling between the US and the GCC

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  • Ismail Genc
  • Abdullah Jubain
  • Abdullah Al-Mutairi

Abstract

Although the two biggest economies of the Gulf Cooperation Council (GCC), namely the Kingdom of Saudi Arabia and the United Arab Emirates, are not economically affected by the business cycles in the US, financial interactions are a different story. In this article, we show that while the GCC economies have decoupled from that of the US, the stock markets in them are very much in synchronization with the fluctuations in the US stock market.

Suggested Citation

  • Ismail Genc & Abdullah Jubain & Abdullah Al-Mutairi, 2010. "Economic versus financial integration or decoupling between the US and the GCC," Applied Financial Economics, Taylor & Francis Journals, vol. 20(20), pages 1577-1583.
    • Handle: RePEc:taf:apfiec:v:20:y:2010:i:20:p:1577-1583
    DOI: 10.1080/09603107.2010.508713
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    Cited by:

    1. Elie I Bouri, 2013. "Correlation and Volatility of the MENA Equity Markets in Turbulent Periods, and Portfolio Implications," Economics Bulletin, AccessEcon, vol. 33(2), pages 1575-1593.
    2. Bley, Jorg, 2011. "Are GCC stock markets predictable?," Emerging Markets Review, Elsevier, vol. 12(3), pages 217-237, September.
    3. Al-Abri, Almukhtar & Genc, Ismail H. & Naufal, George S, 2018. "The Impact of Government Spending on GDP in a Remitting Country," IZA Discussion Papers 11676, Institute of Labor Economics (IZA).
    4. Genc, Ismail H., 2022. "Are Indian Subcontinent remittance markets connected to each other?," Journal of Asian Economics, Elsevier, vol. 80(C).
    5. Somar Almohamad & Anil V. Mishra & Xiao Yu, 2018. "Mena Stock Markets Integration: Pre and Post Global Financial Crisis," Australian Economic Papers, Wiley Blackwell, vol. 57(2), pages 107-141, June.
    6. Tahsin Saadi Sedik & Oral H. Williams, 2012. "Do Gulf Cooperation Countries' equity markets waltz or tango to spillovers?," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 5(2), pages 213-227, April.

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