Thesis (DBA) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department

Includes bibliography (sheets 114-118)

ABSTRACT
The impact of stock market development on the economic growth in recent times has
become of the major areas of study for development and economic researchers as well
as policy makers around the world. Several factors that contribute to economic growth
around the world have been studied however, the factors contributing to the economic
growth of the GCC countries have not been identified in research. This study examines
the impact of stock market development index of the GCC countries for 20 years on
economic growth. A panel data of Saudi Arabia, Kuwait, the United Arab
Emirates, Qatar, Bahrain, and Oman (six countries) for a period of 1980 -2017 was
collected and used for this study. Considering the presence of the endogeneity in the
model, the study examines the panel data. This analysis employed the estimation of
dynamic panel data using GMM model estimator. The result presents a summed
significant relationship between stock market development proxied by each country’s
market index and economic growth among the GCC countries. Bank size and oil
contribute significantly to economic growth since the GCC countries are oil-based
economy. In correspondence with other studies, credits loans and inflation are not
contributors to economic growth. As the evidence from this study represents using
Generalized Method of Moments (GMM) model estimation, the GCC countries studies
shows other Arab nations the level of impact that the stock market development can
contribute to their economies alongside other specific economic sector development
like the Bank size and oil price. This study fills the gap in the literature on variation
on the impact of stock market on economic growth across the globe in the GCC
countries.