What Drives Stock Market Development in Arab Countries?
Faycal Chiad *
Department or Finance, Setif University, Algeria.
Hamoudi Hadj Sahraoui
Department or Finance, Setif University, Algeria.
*Author to whom correspondence should be addressed.
Abstract
Arab stock exchanges have witnessed tremendous growth in recent decades, and the number of listed companies and the size of stock market capitalization have increased. In the light of this remarkable growth, this study aims to find out what are the most important determinants and economic factors affecting this development during the period 2006– 2017. By employing panel data models, we find that trade openness; market liquidity, money supply and economic growth have positive impacts on stock market development, whereas the global financial crisis has negative impact. Based on these results, measures should be taken to improve market liquidity, control of money supply, and maintain a balanced economic growth rate to promote the development of Arab stock exchanges. Policy recommendations are provided based on these findings.
Keywords: Cutaneous tuberculosis, Macroeconomic variables, Serum proteins in tuberculosis, stock markets development, Arab countries, panel data analysis.