Macreconomic variables effect on stock exchange market the case of palestine 2011 to 2020

Abugamea, Gaber (2022): Macreconomic variables effect on stock exchange market the case of palestine 2011 to 2020. Published in: Indian journal of applied economics and business , Vol. Vol.4, No. January 2022

Abstract

The objective of this study is to examine the impacts of some prominent macroeconomic factors on the Palestine Stock Exchange (PEX) Market performance It uses OLS regression estimation to investigate the relationship between (PEX) performance represented by market capitalization and the variables; GDP, inflation, interest rate, foreign direct investments, portfolio investments and unemployment rate, during the period 2011:1 to 2020:1. Distinctively, OLS results show a positive significant effect of inflation on (PEX), meanwhile portfolio investments have a negative marginal effect on the (PEX) performance. Moreover, (PEX) performance related insignificantly with a negative sign to GDP, interest rate, foreign direct investments and unemployment rate, respectively. Overall, these macroeconomics factors have a significant effect on PEX as denoted by F-statistics value.

• Item Type: MPRA Paper
• Language: English
• Keywords: Palestine Stock Exchange (PEX), Macroeconomic indicators, Market Capitalization, OLS
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G1 - General Financial Markets > G10 - General

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