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

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  • Mr. Olumuyiwa S Adedeji
  • Mr. Sohaib Shahid
  • Ling Zhu

Abstract

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.

Suggested Citation

  • Mr. Olumuyiwa S Adedeji & Mr. Sohaib Shahid & Ling Zhu, 2018. "Saudi’s Growth and Financial Spillovers to Other GCC Countries: An Empirical Analysis," IMF Working Papers 2018/278, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/278
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    References listed on IDEAS

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    1. Alotaibi, Abdullah R. & Mishra, Anil V., 2015. "Global and regional volatility spillovers to GCC stock markets," Economic Modelling, Elsevier, vol. 45(C), pages 38-49.
    2. di Giovanni, Julian & Shambaugh, Jay C., 2008. "The impact of foreign interest rates on the economy: The role of the exchange rate regime," Journal of International Economics, Elsevier, vol. 74(2), pages 341-361, March.
    3. Osman Suliman, 2011. "The large country effect, contagion and spillover effects in the GCC," Applied Economics Letters, Taylor & Francis Journals, vol. 18(3), pages 285-294.
    4. Tahsin Saadi Sedik & Mr. Oral Williams, 2011. "Global and Regional Spillovers to GCC Equity Markets," IMF Working Papers 2011/138, International Monetary Fund.
    5. Al-Mawali, Nasser, 2015. "Intra-Gulf Cooperation Council: Saudi Arabia Effect," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 30(3), pages 532-552.
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    Cited by:

    1. Mr. Olumuyiwa S Adedeji & Mr. Erik Roos & Mr. Sohaib Shahid & Ling Zhu, 2019. "U.S. Monetary Policy Spillovers to GCC Countries: Do Oil Prices Matter?," IMF Working Papers 2019/304, International Monetary Fund.
    2. Merve Aksoylar Baysoy & Sumru Altug, 2021. "Growth Spillovers for the MENA Region: Geography, Institutions, or Trade?," The Developing Economies, Institute of Developing Economies, vol. 59(3), pages 275-305, September.
    3. T.P. Ghosh, 2019. "Economic Diversification and the State of Oil Dependency of UAE Stock Returns-An Analysis of ADX Indices 2014-2019," Accounting and Finance Research, Sciedu Press, vol. 8(4), pages 199-199, November.

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